GST In India PDF

Introduction to TAXES A tax is a mandatory financial charge or levy or burden imposed upon a taxpayer (an individual or property owner or business entity or legal entity) by the government in order to fund various public expenditures or provide various public services.  TAX TAX...

Introduction to TAXES A tax is a mandatory financial charge or levy or burden imposed upon a taxpayer (an individual or property owner or business entity or legal entity) by the government in order to fund various public expenditures or provide various public services.  TAX TAX DIRECT INDIRECT DIRECT TAXES  Direct tax is a kind of tax which is imposed directly on the taxpayer and he/ she pays the same directly to the government.  In other words, the liability as well as the burden lies on the same person which can never be shifted to someone else.  The various types of direct taxes are Income Tax, Corporate Tax, Wealth Tax, Estate Duty, Gift Tax, Expenditure Tax and Fringe Benefit Tax. ADVANTAGES OF DIRECT TAX PROGRESSIVE in Nature Not INFLATIONARY DO NOT AFFECTS PRICES OF GOODS, etc.  INDIRECT TAXES Indirect tax is one where the liability to pay the tax lies on a person who can shift the tax burden to another. Indirect taxes are charges imposed on the sale, purchase, or use of goods and services, rather than on an individual's income or wealth. The burden of indirect taxes is ultimately borne by the consumer, as they are built into the price of the product or service. Common examples of indirect taxes include Goods and Services Tax (GST), Value-Added Tax (VAT), Excise Duty, and Customs Duties.  Types of Indirect Taxes Consumption Production Taxes Taxes Trade Taxes Taxes levied on the Taxes collected on the sale, purchase, or Taxes imposed on the import or export of consumption of goods manufacture or goods, such as and services, such as production of goods, Customs Duties. GST and VAT. like Excise Duty. Goods and Services Tax (GST) GST is a comprehensive indirect tax levied on the supply of goods and services, replacing multiple indirect taxes. GST is a destination-based tax, meaning it is levied at the point of consumption rather than production. GST can have multiple tax rates, such as standard, reduced, and zero rates, based on the nature of the goods or services Kelkar Task Force 2004 recommended GST Constitutional Provisions  Article 245 - Parliament may make laws for the whole or any part of the territory of India, and the Legislature of a State may make laws for the whole or any part of the State.  Article 246 - Article 246 of the Constitution deals with the division of power between the Union and the States. It demarcates the powers of the Union and the State by classifying their powers into 3 lists. They are the Union List, the State List and the Concurrent List. Parliament has power to make laws with respect to any matter for any part of the territory of India  Article 265 - "No tax shall be levied or collected except by authority of law" Article 246A - Concurrent jurisdiction for levy & collection of GST by the Centre & the States Article 269A - Centre to levy & collect IGST on supplies in the course of inter-State trade or commerce including imports Article 366 - Article 366(12A) - Defines GST Article 279A - Empowers the President to constitute a joint forum of the Centre and States namely, Goods & Services Tax Council (GST Council). Types of GST Types of GST Intra-state Intra-state Features of GST Importance Of GST Burden on Final Consumer Substitute of Bundle of Taxes Increase in Tax GST Compliance Availment Removes of Input Cascading Tax Credit Effect Benefits Of GST Drawbacks Of GST Inclusion of no consideration supply Costly Goods Lack of IT Infrastructure Awareness of Stakeholders Periodic fillings of Returns Personalized Accounting for different States GST COUNCIL GST COUNCIL GST NETWORK - GSTN SUPPLY UNDER GST Under GST, Supply is considered a taxable event for charging tax. Supply includes sale, transfer, exchange, barter, license, rental, lease and disposal. If a person undertakes either of these transactions during the course or furtherance of business for consideration, it will be covered under the meaning of Supply under GST. Elements of Supply Supply has two important elements: Supply is done for a consideration Supply is done in course of furtherance of business  Supply for Consideration Either in money or in kind or partly in money and partly in kind or monetary value of any act or forbearance for the supply. By the recipient of supply or any other third person. (Subsidy given by any Govt. is excluded) Monetary Considerations – Cash, Cheque, Promissory notes, Bills of Exchange, Letter of Credit, Draft, Money order, etc. Non - Monetary Considerations includes supply of Goods or Services in return for provision of services, refraining or forbearing to do an act for provision of service and tolerating an act or a situation in return for provision of a service. Supply in Furtherance of Business SERVICES UNDER GST THANK YOU