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Public Finance in India
Goods and Services
Tax in India
By Anshika Gautam
22019563014
Content
01 Understanding GST
02 GST Network (GSTN)
03 CBIC
04 GST Act
05 GST Council (GSTC)
06 Decisions by GSTC
07 Benefits of GST
What is GST? Introduction
01
Proposed by the Kelkar Task Force in 2000
Goods and Services Tax, is
and implemented on 1st July 2017.
an indirect tax imposed on The GST Bill was introduced in 2011 and
the supply of goods and passed in 2016 after extensive deliberations.
services.
Major shift in tax structure
02
All major indirect taxes were subsumed
into one unified tax system.
Now, both Centre and States can levy
and collect tax on the same transaction.
Dual GST Model
CGST: Central GST
03 SGST: State GST
IGST: Integrated GST
UTGST: Union Territory GST
GST Return
GST return is a document filed by a
registered taxpayer with the government,
showing : 04
Sales, purchases, tax collected, tax paid
and how much tax is owed or refundable
34 GST Suvidha
Providers (GSPs)
appointed.
Infosys appointed as
Managed service
GST Network provider (MSP).
Online portal
Incorporated on 28 t h Function as a
March 2013 as Section common pass-
25 private limited through portal for
company with strategic taxpayers
control retained by the
Government.
Facilitates
registration, filing of
return, payment of
tax, etc
CBIC
01
CBIC was formed after the
implementation of GST on July 1, 2017,
by renaming the Central Board of Excise
and Customs (CBEC).
02
Role in policy making : GST Law, Rules &
Procedures- CGST UTGST& IGST Law
Ensures the smooth implementation of
GST in the country.
03
Responsible for collection of central
Excise duty on products outside GST-
Petroleum products and tobacco
04
Focuses on training officers of Customs,
Excise, and GST in tax administration
and policy enforcement. Both Centre
and States
GST Act
Main Features
All transactions and processes through online- non intrusive administration
PAN based registration
Registration only if turnover more than Rs. 20 lac
Option of voluntary registration
Credit to recipient only if invoice matches
Auto populated monthly returns and annual return
Composition taxpayers to file quarterly returns
Automatic generation of returns
GST practitioners for assisting filing of return
Tax can be deposited by internet banking, NEFT/RTGS, Debit/Credit card or
over the counter
Concept of TDS and TCS
Refund to be granted within 60 days
90% refund to exporters within 7 days
Interest payable if refund not on time
Refund directly credited in Bank accounts
Anti-profiteering provision
GST Council
GSTC (Article 279A) makes
recommendations on everything
related to GST including laws, rules
and rates etc
Council Constitution
Chairperson- Union Finance Minister
Members- MOS (Finance) and all ministers of
Finance and taxation of each state
GSTC
Quorum is 50% of total members
Decision making
Weightage of votes:
Centre- 1/3 r d of total votes cast
States (all taken together)- 2/3 r d of total
votes cast
Decision by 75% majority
GST Council
Decisions
Four tax rates- 5%, 12%, 18% and 28%
Some goods and services to be exempted.
Separate tax rate for precious metals
Threshold limit for exemption to be Rs. 20 lac (Rs. 10 lac for special category
states)
Compounding threshold limit to be Rs. 50 lac.
Government to convert existing Area based exemption schemes into
reimbursement based schemes
Compensation for States to be provided through cess.
Cess over the peak rate of 28% on specified luxury and demerit goods.
For single interface -
1. 90% of tax payers having turnover 1.5cr. would vest with state tax
administration
2. 10% of tax payers having turnover 1.5 cr. would vest with Central tax
administration
3. Taxpayers having turnover above 1.5 cr would be divided equally between
central and State tax administration
Rules on ITC, registration, invoice, payments, returns and refund.
To Trade To Consumers
Reduction in multiplicity of Simpler Tax system
taxes Reduced prices of G&S due
Mitigation of cascading to removal of cascading
Simpler tax regime: fewer Uniform prices throughout the
rates and exemptions country
Protection of domestic Increased employment
industry- IGST opportunities
Abolition of CST (Central
Sales Tax)
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