PRESENTATION ON GOODS AND SERVICE TAX by- aditya patil ICWA FINAL STUDENT: PRESENTATION ON GOODS AND SERVICE TAX by- aditya patil ICWA FINAL STUDENT What is gst?: What is gst ? GST Means Goods and Service Tax a VAT-plus , consumption and destination point-based system of regime. Concept of Services at par with Goods , based on Value-addition at each stage, with set-offs in respect of Input Tax Credit, as for VAT “ Sale ” as the event for Taxation Abolition of various Indirect Taxes Dual structure of Central and State GSTs, combined as Integrated GST CONTINUED……….: CONTINUED………. Cost-reduction due to removal of Cascading effect of multiple points of Central & State Indirect Taxes. CGST and SGST to be paid into the accounts of Centre & States , respectively . Input Tax Credits paid against CGST to be taken as credit for Centre only, similarly for SGST. No cross-utilization allowed between these two accounts, except Inter-State transactions. GST would provide:-: GST would provide:- (a) Comprehensive set- off relief for trade, industry and agriculture. (b) Removal of cascading effect on CENVAT load and (c) Additional power of taxation of services to the States GST Model for India : GST Model for India (a) The working sub-group has suggested various models. (b) The Empowered Committee recommended the dual structure model which has the following features:- The GST shall have two components The Central GST and State GST should be applicable to all transactions of goods & services. Cgst and sgst: Cgst and sgst To be credited to their respective accounta Unform procedure for collection Administration to respective central and state A uniform SGST threshold across States (except for the Special Category States and North Eastern States). The tax payers to submit periodical returns to respective authority Assessment, enforcement, scrutiny and audit to be undertaken by the authority collecting tax GST : GST GST is a tax on goods and services with comprehensive and continuous chain of set-off benefits from the producer’s point and service provider’s point upto the retailer’s level. It is essentially a tax only on value addition at each stage, and a supplier at each stage is permitted to set-off, through a tax credit mechanism, the GST paid on the purchase of goods and services as available for set-off on the GST to be paid on the supply of goods and services. The final consumer will thus bear only the GST charged by the last dealer in the supply chain, with set-off benefits at all the previous stages. GST SYSTEM: GST SYSTEM INVOICE SYSEM :- GST (Input) can be claimed on the basis of acknowledgement of invoice , SAME AS MERCHANTILE SYSTEM OF ACCOUNTING. PAYMENT SYSTEM :- IN payment system as the tax is to be paid on receipt basis and further Cenvat credit is only permissible when payment of the service is made. HYBRID SYSTEM :- In this system GST (Input) can be claimed at the time of receiving invoice and GST (Output) is accountable on the ground of payment. How GST Will Work : How GST Will Work The idea of Goods and Services Tax (GST) also known as Value Added tax (VAT) The taxable event is ‘supply of goods’ and ‘supply of services’ Any transmit of right to utilize goods will comprise supply of goods Any supply not engaging goods will treat as supply of service. The final consumer ends up bearing the full burden of tax without any set off benefit. The GST can be categorized in the following segments for better understanding: The GST can be categorized in the following segments for better understanding Charging tax Getting credit of gst Unlimited burden of tax on last customer Registration Tax period Refunds Exempted goods & services Zero rated goods & services Tax invoice Abolition of other indirect taxes: Abolition of other indirect taxes Central sales tax State level sales tax Other local tax Stamp duty Telecom licence fees Turnover tax What are the items on which GST may not be applied?: What are the items on which GST may not be applied? Alcohol, tobacco, petroleum products are likely to be out of the GST regime. And lastly, THANK YOU FOR YOUR PATIENCE !!: And lastly, THANK YOU FOR YOUR PATIENCE !!