Introduction To

Current Tax System

Direct Tax Indirect Tax

Income Tax
Central State
Government Government

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 Current Levies
Central Government: State Governments:
• Customs Duty • Value Added Tax (VAT)
• Basic Custom Duty
• Central Sales Tax (CST)
• Customs Cess (Edn. &Sc.Edn.)
• Countervailing Duty • Entry Tax
• Special Additional Duty (SAD)
• Octroi / Local Body Tax (LBT)
• Excise Duty – BD & AED
• Entertainment Tax
• Service Tax
• Luxury Tax
• Product Specific like Automobile Cess
• Stamp Duty & Registration Fees
• Infrastructure Cess & Clean energy Cess
• Research & Development Cess

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 GST Key Milestones
29th March 2017
CGST Bill, IGST bill, UTGST and
GST compensation bill was
passed in Lok Sabha
14th June 2016 – Draft 16th Sept 2016
Model GST Law on Notification of 101
public domain constitutional Act 2016

26th Nov 2016

Revised Draft Model
GST Law announced
on public domain

8th Sept,2016
President Assent
– 122 CAB 4
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 GST Key Milestones
2nd April 2017
Revised Rules were made
available on various
provisions of law 13th April 2017
IT Infrastructure
President assent to all
Readiness
four Goods and Services 18th May 2017 GST
Tax Bills Council Meet on GST
Rate Schedule 1st July
2017

6th April,2017 The

above four bills were
passed in Raja Sabha
Finalization GST Rules
16th April 2017 and Return Formats
Telangana passed
SGST ACT 5
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 Introduction to GST

Indirect taxation GST is not an GST is

GST is outright
revolution One Tax, incremental tax, highly
Business Reform
since One Nation,
not just
it is an compliance
our One Market” Transformational driven
Tax Reform
Independence Tax Reform Law

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 Why GST?

Simple Tax Eliminates Technology Increased

Structure Cascading Driven System revenue
Effect

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 Highlights of GST

Valuation method
Common threshold
broadly aslimit across
the country
‘Transaction Value’
Branch
Continuity transfers
of tax credit across
taxable
the supply andtill
chain credit
it reaches
eligibility
the consumer

Tax credit eligibility

Elimination on inward
of tax cascading
supply
effect of goods
in the / services
supply chain for
Inter-state transaction

PAN Based Registration

No declaration forms (Form
‘on Supply’ tax liability instead – C, F, etc…….)
of ‘Removal / Sale’

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Registration