WELCOME to the Session on Overview of GST, Supply,

Transcript:WELCOME to the Session on Overview of GST, Supply,:
WELCOME to the Session on Overview of GST, Supply, HSN 26th December 2020 Presentation by : A. K. Sinha Lawyer and Consultant (Ex CGST Officer) ACS Taxcon [Credit:- the pictorial slides taken from internet material] Introduction (in nutshell) Why GST ? What was wrong with earlier law? How remedied? Multiplicity of taxes. [GST remedied this by subsuming 17 taxes: 8 from Central side [BED, duty of excise (M&TP), AED(GSI), AED(T&TP), Service Tax, CVD, SAD, Cesses/surcharges] 9 from State side [VAT, CST, entry, entertainment, luxury, lottery, Purchase, Advertisement, Cesses/surcharges] ] Excessive compliances. [Remedied by Simplification and rationalisation and uniformalization of law/procedure/compliance across India, e-compliance, faceless administration, single interface, cross empowerment] Fractured flow of Input Credits. [remedied by integrating goods & services; central and State taxes; plugging tax-free procurements; pruning exemptions; and introducing a comprehensive Consumption Based Value Added Tax to be levied at all stages of supply] Cascading effect of taxes (tax on taxes). [Remedied through comprehensive tax base and seamless credit across the value chain] Classification issues. [remedied by rate rationalisation; by eliminating distinction between goods and services] Now as GST we have- A Common, Comprehensive, Consumption based VAT Concurrently levied by both levels of Government. 3 Taxes not subsumed:- [Total 7:- BCD, Export duty; toll tax, road and passenger tax, Property tax, Stamp duty, Electricity duty, entertainment tax by local bodies] Items still outside GST ambit:- ALHC, five Petro-products, Electricity, tobacco products, Money, Securities, Actionable claims except lottery/ betting/ gambling;. GST liablity:- Taxable Event for GST:- Applicable on Supply of goods and / or services [Art.366(12A), 366(26A)] Six Essentials for GST liability:- [G/S supply, consideration, business, taxable (supply, person, territory] Supply even when one or more essential is absent- eg Free supply (consideration + business may be absent) No supply even when all present – eg employee’s service to employer, transfer of business as a going concern. Goods & Service Tax (GST) Service Tax Excise Duty VAT Luxury Tax Entertainment Tax CST Octroi Duty State Excise Duty Features of GST. One Nation & One Tax & One Market Events are based on Concept of Supply. Streamlining & Cross Utilization of Input Tax Credits. Revolutionary Invoice Matching Concept. GST Governing Body with power to take decision on rates, exemption, threshold exemptions, etc with 33.33% voting power of Union Government & 66.66% power lies with the State Government. GST Council GST Landscape 6 Goods and Services Tax (GST) IGST SGST CGST