GST – AN OVERVIEW

Visakh G M
 INTRODUCTION
• Goods and Services Tax (GST) is a successor of VAT used in India
• Came into effect from 01-July-2017 through 101 Amendment to
the constitution of India by GOI
• It is comprehensive - it has subsumed almost all the indirect taxes
except a few state taxes.
• It is Multi-staged - the GST is imposed at every step in the
production process but is meant to be refunded to all parties in
the various stages of production other than the final consumer
• It is destination-based tax - tax is collected from the point of
consumption and not the point of origin like previous taxes
• Slabs – 0%, 5%, 12%, 18% and 28%
• Exemptions – petroleum products, alcoholic beverages, electricity
GST Council
• The Council is comprised of the Union Finance Minister (who is the Chairman of the
Council), the Minister of State (Revenue) and the State Finance/Taxation Ministers as
members.

Goods and Service Tax Network (GSTN)

• (GSTN) is a nonprofit organization formed to create a sophisticated network, accessible
to stakeholders, government, and taxpayers, to access information from a single source
(portal)

• The GSTN software is developed by Infosys Technologies and the NIC maintains the
information technology network that provides the computing resources
Salient Features
a. GST is applicable to the supply of goods or services

b. GST applies to all goods other than alcoholic liquor for human consumption and five
petroleum products

c. Threshold Exemption

d. Compensation levy

e. The Integrated tax (IGST) is levied and collected on inter-State supply of goods and
services.

f. GST is largely technology-driven. It reduces the human interface to a great extent and
this would lead to speedy decisions.
Salient Features
g. GST has given a major boost to the ‘Make in India’ initiative of the Government of India
by making goods and services produced in India competitive in the National as well as
International market. Also, all imported goods are charged Integrated Tax (IGST) which
is equivalent to Central GST + State GST. This brings equality with taxation on domestic
products.

h. Under the GST regime, Exports and supplies to SEZ are treated as zero-rated supplies.
This ensures boosting of Indian exports in the international market thus improving the
balance of payments position. The exporter has the option to either pay integrated tax
and claim its refund or export under LUT / bond without tax and claim refund of Input
Tax Credit.
Minimal Interface
• There is cross-empowerment of officers belonging to Central and State Governments.
Officer of CGST have been empowered to act as proper officer of SGST and vice versa.
The taxpayer has to interact with only one authority.

• Payment of tax is to be made electronically through internet banking, through the

modes of Real Time Gross Settlement (RTGS) or National Electronic Funds Transfer (NEFT)
or Immediate Payment Service (IMPS) or Unified Payments Interface (UPI).Smaller
taxpayers are allowed to pay tax over the bank counter

Refund
• Time limit for claiming online refund has been kept at two years. Refund is granted within
60 days from the date of receipt of complete application.
Summary
The Goods and Services Tax (GST) has been a significant reform in India's indirect tax
system. By replacing a multitude of complex taxes with a single, unified system, GST aims to
create a more efficient and transparent tax environment.

Key achievements of GST:

• Unified Market: Removed inter-state tax barriers, facilitating smoother movement of

goods.

• Reduced Cascading Effect: Input Tax Credit mechanism minimizes double taxation,
lowering overall tax burden.

• Improved Compliance: Electronic filing and record keeping enhance transparency and
reduce tax evasion.

• Enhanced Competitiveness: Streamlined tax structure can make Indian businesses more
competitive domestically and internationally
Summary
Challenges and considerations:

• Implementation complexities: Continuously refining the system for smoother compliance.

• Impact on certain sectors: Adjustments might be needed to ensure fair treatment across
all industries.

• Consumer awareness: Ongoing efforts to educate consumers about the impact of GST
on prices.

Overall, GST is a positive step towards a more efficient and equitable tax system in India.
While challenges remain, the long-term benefits for businesses, consumers, and the overall
economy are significant
THANK YOU