Concept Of: Goods & Service Tax

CONCEPT OF
GOODS &
SERVICE TAX
CONTENT
1. Meaning of GST
2. Important features of GST
3. Benefits Of GST
4. Types of GST
5. Conclusion
CONCEPT OF
GOODS & SERVICE TAX (GDP)
Meaning of GST
GST stand for goods and services tax it is a simple tax on the supply of
goods and services right from the manufacturer to the consumer GST
isn’t really a tax only on value addition at each stage
In other words GST A tax of supply of goods and services or both

except tax on supply of alcoholic liquor from human consumption It is
Destination based tax And leave at a single point at the time of
consumption of goods and services by the ultimate consumer
Definition of goods and services
According to article 366 (12A) “Any tax on
supply of goods and services or both except
taxes on supply of the alcoholic liquor for
human consumption.”
GOODS
According to Section 2(52) of the CGST act goods

means “every kind of movable properties other
than money and security but including those things
attached to or for meeting part of land such a
growing crops grass etc .which are agreed to be
served before supply or under control of supply”.
SERVICE
Services According to Section

2(102)of CGST act. goods money
and security but includes those
activities which are related to the
use of money or it convert by
cash or buy any mode form one
form currency for denomination
to another form of currency
• GST is generally based on the principle of value added tax
(TAX).
• GST is Including 17 indirect taxes that existed in PRE- GST era.
• The unique features of GST is the integration of taxes on

goods and Taxes on services as well.
• The main purpose of GST is that making India one unified
common market.
• All the product across the country all the product and services the
same rate of tax.
• GST is changed at the national level and state level at similar rate
for the same product
These indirect taxes include in GST
POWER OF
TAX GST
Under the Articles 24 6A “Parliament has
exclusive power to make loss with respect of
GST where the supply of goods or services for
both take place in the course of interstate
trade or commerce subject to the above Union
and even state would have powers to make
laws with regards GST imposed by union on
that state in respect of interstate supply”.
FACTS ABOUT GST
• France became the first country in the world to implement GST in 1954.
• GST was proposed in India in 2000 but took over 17 years to be

implement.
• GST is implement in India from 1st July
2017.
• Father of GST in India is Atal Bihari Vajpayee
• The brand ambassador of GST is Amitabh Bachan in India.
• GST system in India is based on the Canadian GST model.
• GST system in India has tax sell of 0%,5%,12%,18%,and 28%.
• GST revenue is shared between the Central and state government in India.
Important features of GST
The following are the main features of GST :
■ Single indirect tax in GST
GST has been introduced as a single ,unified Tax reform that
has eliminated Other indirect Centre and state Taxes like
Central Value Added Tax , Special Additional Duty of customs ,
Service Tax , and VAT and converted them into a single tax .
The elimination of these taxes has not only made compliance
easier for businesses but has also helped make many goods
and services more affordable for Consumers.
■ Input Tax Credit System in GST
One of the most prominent GST feature is the input tax
Credit . If a manufacturer or service provider has already
Paid input tax on a purchase, the same can be deducted
from their total output tax Liability. The input and output invoices must
match to take advantage of the tax credit . This helps remove the
Cascading tax effect or the traditional ‘tax-on-tax’ regime . Moreover, it
also helps in reducing tax evasion .
■ GST composition scheme
■ SMEs with an annual turnover of up to ₹1 crore or ₹ 75 lakh in specified
states can also voluntarily opt for the composition scheme. With this
scheme ,businesses can pay a fixed GST rate of 1% on their turnover.
However, such business must select whether to use the composition
scheme or the input Tax Credit features.
■ Four — tier tax structure in GST
GST has a 4-tier tax structure of 5% , 12% ,18% and 28% . All goods and
services can only be taxed as per this tax structure. Many essential
commodities, such as food items ,do not have any GST . Improved
transparency and cheaper goods and services are two of the biggest
advantage of this 4-tier structure.
In other words GST brings uniformity, simplification, and transparency to
the tax structure.
Benefits of GST
GST benefits consumers , the government, business,
and industries . Here are a few advantages of the
Goods and services tax :
• Simple compliance
The GST regime in India is built on a solid and
comprehensive IT System. To make compliance simple
and transparent, all taxpayer services, including
registration, payment, returns, and more are
accessible to citizens online .
• Uniformity of tax rates and structures

GST ensures uniformity in tax rates across the country
, promoting a common market and reducing tax
related distortion among states .
■ Better leakage controls
Another merit of GST is that the robust IT infrastructure . The easy transfer of
input tax credits from one level to the next in the stream of value addition
makes it possible for the GST to have a built—in mechanism to encourage
business to pay their taxes on time .
■ Boost to economic Growth

By eliminating barriers to interstate Trade and Creating a common market,
GST contributes to economic growth and enhances the ease of doing
business.
■ Transparent Tax system
GST brings transparency in the Taxation system as it is
based on self – Policing Mechanism , reducing the scope of
tax evasion .
■ Benefits to consumers
GST aims to benefit Consumers by reducing the
overall tax burden on goods and services , leading
to potentially lower prices for many products .
■ Integration of supply chain
GST integrated the entire supply chain by subsuming
various taxes ,making it more efficient and reducing
logistics costs.
■ Global Competitiveness
A simplified and transparent Tax system enhances the
global Competitiveness of businesses , attracting many
departments and fostering economic development.
■ Integration of supply chain
GST integrated the entire supply chain by subsuming
various taxes ,making it more efficient and reducing
logistics costs.
■ Global Competitiveness
A simplified and transparent Tax system enhances the
global Competitiveness of businesses , attracting many
departments and fostering economic development.
TYPES OF GST IN INDIA
India has three types of GST :-CGST, SGST, and
IGST.the simple division market is easy to tell
the difference between interstate and
interstate goods. Its also reduce indirect taxes.
read about these three kinds of GST to find
out more:-
1. SGST or State goods &service Tax:-
SGST is the tax that the state government life on
interstate goods and services transactions. Is SGST
includes all other taxes like entertainment tax, luxury
tax ,and purchase tax. UGST or union territory goods
and service tax replace SGST in union territories like
Chandigarh.
2. CGST or Central Goods & Service Tax:-
The central government livies GST on interstate goods and
services transactions. It collects the revenue generated
through CGST. The government levies along with SGSTor
UGST and the state and Centre state the revenues.
For example :- you are a
Bengaluru based dealer and are selling to another dealer in
Bengaluru since it is an intrastate sale the government will
apply both CGST and SGST. let us say that your transaction of
goods is worth Rs. 30000, and, it allracts 18% GST then the
state government will collect 9% of this amount of SGST the
Centre collects a matching amount of CGST.
3. IGST or Integrated Good & Service Tax:-
Integrated goods and services tax are the tax levied on interstate goods and services
transactions. it applies to imports and exports as well. Under IGST both the centre and
the state share the taxes charged.
IGST also helps you claim on input tax credit. it is a facility that checks cascading taxes
and allows business owners to save at every stage of the supply chain.
4. UGST or Union Territory Goods & Service Tax:-

UTGST is a component of the GST regime in India that applies to the supply
of goods and services within the Union Territories (UTs) of India. UTGST is
levied along with Central GST (CGST) on intra UT transaction, while
integrated GST (IGST)is lived on inter or interstate transaction. UTGST is
collected by the central government and share with the UTs. UTGST has the
same tax rate and exemptions of SGST which applies to the states with
legislatures.
TYPES OF GST IN INDIA
Conclusion
Implementing GST in India has taken a big and
step towards restructuring indirect taxation . The
issues of double taxation has been resolved and a
common national market has been developed by
combining many state and Central taxes in a single
tax.
In conclusion goods and services tax (GST) Plays a

pivotal role in simplifying the taxation system,
promoting transparency , and fostering economic
growth. Its implementation has streamlined tax
processes, eliminated Cascading effects , and
enhanced ease of doing business . As businesses
and governments adapt to this taxation framework
, GST continues to be a transformative force in
shaping the economic landscape.
THANK YOU...

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CONCEPT OF

GOODS & SERVICE TAX (GDP)

In other words GST A tax of supply of goods and services or both

According to Section 2(52) of the CGST act goods

Services According to Section

• The unique features of GST is the integration of taxes on

• GST was proposed in India in 2000 but took over 17 years to be

• The brand ambassador of GST is Amitabh Bachan in India.

• GST system in India is based on the Canadian GST model.

• GST system in India has tax sell of 0%,5%,12%,18%,and 28%.

• Uniformity of tax rates and structures

■ Boost to economic Growth

4. UGST or Union Territory Goods & Service Tax:-

In conclusion goods and services tax (GST) Plays a

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