GST available to set ofg the tax to be paid at the next stage of - PowerPoint PPT Presentation

Benefjts of GST GST stands for Goods and Services Tax, which will be transactions across the entire value chain, GST would levied on the supply of goods or services or both in India. mitigate the ill efgects of cascading and thereby improve GST will subsume a number of existing indirect taxes our competitiveness. being levied by the Centre and State Governments, including Central Excise duty, Service Tax, VAT, Purchase GST is a destination based consumption tax. It has been Tax, Central Sales Tax, Entry Tax, Local Body Taxes, designed in a manner so that the tax is collected at every Octroi, Luxury Tax, etc. stage and the credit of tax paid at the previous stage is GST available to set ofg the tax to be paid at the next stage of transaction, thereby eliminating cascading of taxes. GST: This eradicates “tax on tax” and allows cross utilization “ of input tax credits, which benefjt the industry by GOODS AND SERVICES TAX making the entire supply chain tax neutral. Tie Single Biggest Tax Reform Undertaken BENEFITS “ Since Independence to Ease Compliance Industry Government Citizens GST BRINGS It brings benefjts to all the stakeholders viz. industry, government and the citizens. It is expected to lower BENEFITS the cost of goods and services, boost the economy and make our products and services globally competitive. Building GST aims to make India a common national market FOR ALL with uniform tax rates and procedures and removes Nation Together the economic barriers, thereby paving the way for an integrated economy at the national level. By subsuming most of the Central and State indirect taxes into a single tax and by allowing a set-ofg of prior-stage taxes for the Follow us on: Directorate General of Taxpayer Services @CBEC_India CENTRAL BOARD OF EXCISE & CUSTOMS cbecindia @askGST_GoI www.cbec.gov.in

GST will give a major boost to the ‘Make in India’ entire supply chain. The seamless availability of Input of returns, payment of taxes, fjling of refund claims initiative of the Government by making goods or Tax Credit across goods or services at every stage of etc., would be done online through GSTN. The input services produced or provided in India competitive supply will enable streamlining of business operations. tax credit will be verifjed online. Electronic matching One tax change in the national and international markets. Further, all of input tax credit across India will make the process imported goods will be charged with integrated tax Uniform GST rates will reduce the incentive for evasion more transparent and accountable. This will encourage bringing in... (IGST), which will be more or less equivalent to Central by eliminating rate arbitrage between neighbouring a culture of compliance. This will also greatly reduce GST + State GST. This brings parity in taxation on local States and that between intra and inter-State sales. the human interface between the taxpayer and the tax and imported products. administration, leading to speedy decisions. Harmonization of laws, procedures and rates of tax will Under the GST regime, exports will be zero rated in make compliance easier and simple. There would be Average tax burden on trade and industry is likely entirety unlike the present system where refund of common defjnitions, common forms/formats, common to come down, which is expected to reduce prices, Increase in some taxes is not allowed due to fragmented nature interface through GST portal, resulting in effjciencies resulting in more consumption, which in turn means of indirect taxes between the Centre and the States. and synergies across the board. This will also remove more production and thereby boosting the growth of Export All taxes paid on the goods or services exported or multiple taxation of same transactions and inter-State the industries. The removal of cascading of taxes and on the inputs or input services used in the supply of disputes like the ones on entry tax and e-commerce increased transparency will make the citizens more such export goods or services shall be refunded. The taxation existing today. All this will also help in reduction informed about the taxes they pay while purchasing principle of exporting only the cost of goods or services of compliance costs, alleviate the need for multiple goods or services. GST will boost domestic demand, and not taxes would be followed. This will boost Indian record keeping for a variety of taxes, leading to lesser create more opportunities for domestic business exports, thereby improving the balance of payments investment of resources and manpower in maintaining and drive job creation. GST might not be the panacea Boosting the position. Exporters will be facilitated by grant of records. for all the ills of indirect tax system but is also not far Economy provisional refund of 90% of their claims within seven from that. days of issue of acknowledgement of their application, Common procedures for registration of taxpayers, thereby resulting in the easing of position with respect refund of taxes, uniform formats of tax return, common to cash fmows. tax base, common system of classifjcation of goods or services along with timelines for every activity will lend GST is expected to bring buoyancy to the Government greater certainty to taxation system. More Revenue by widening the tax base and improving the Employment taxpayer compliance. GST is likely to improve India’s GST is largely technology driven. The interface of the ranking in the Ease of Doing Business Index and is taxpayer with the tax authorities will be through the estimated to increase the GDP by 1.5% to 2%. common portal (GSTN). There will be simplifjed and automated procedures for various processes such GST will prevent cascading of taxes by providing a as registration, returns, refunds, tax payments, etc. comprehensive input tax credit mechanism across the All processes, be it of applying for registration, fjling Follow us on: Directorate General of Taxpayer Services @CBEC_India CENTRAL BOARD OF EXCISE & CUSTOMS cbecindia @askGST_GoI www.cbec.gov.in

Registration under GST law Introduction In any tax system, registration is the most fundamental Liability to register requirement for identifjcation of tax payers ensuring tax GST being a tax on the event of “supply”, every supplier compliance in the economy. Registration of any business entity needs to get registered. However, small businesses having under the GST Law implies obtaining a unique number from all India aggregate turnover below Rupees 20 lakh (10 lakh the concerned tax authorities for the purpose of collecting if business is in Assam, Arunachal Pradesh, J&K, Himachal tax on behalf of the government and to avail Input Tax Credit Pradesh, Uttarakhand, Manipur, Mizoram, Sikkim, Meghalaya, GST for the taxes on his inward supplies. Without registration, a Nagaland or Tripura) need not register. The small businesses, person can neither collect tax from his customers nor claim having turnover below the threshold limit can, however, any input Tax Credit of tax paid by him. voluntarily opt to register. Need and advantages of registration The aggregate turnover includes supplies made by him on GOODS AND SERVICES TAX Registration will confer the following advantages to a behalf of his principals, but excludes the value of job-worked taxpayer: goods if he is a job worker. But persons who are engaged • He is legally recognized as supplier of goods or services. exclusively in the business of supplying goods or services or • He is legally authorized to collect taxes from his customers both that are not liable to tax or wholly exempt from tax or and pass on the credit of the taxes paid on the goods or an agriculturist, to the extent of supply of produce out of REGISTRATION services supplied to the purchasers/recipients. cultivation of land are not liable to register under GST. • He can claim Input Tax Credit of taxes paid and can utilize the same for payment of taxes due on supply of goods or services. • Seamless fmow of Input Tax Credit from suppliers to recipients at the national level. Follow us on: Directorate General of Taxpayer Services @CBEC_India CENTRAL BOARD OF EXCISE & CUSTOMS cbecindia @askGST_GoI www.cbec.gov.in