models of gst

8/15/2019 Models of Gst

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MODELS OF GST

B

ABHILAS

ABHISHEK

RAJASHREE6/7/16


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Three Prime M!e"# $% GST

• Le&ie! ' he *e+re

• E,- T/ + imr % ,!#.*e+r" GST• Le&ie! ' he Se.• E,- T/ + #"e % ,!# i+&"&

m&eme+ % ,!# 1ihi+ he

'e im#e! ' Se G&er+me

Se GST

• Le&ie! ' he Se +! *e+re2+2rre+".

• E,- T/ "e&ie! + i+er #e ,!# +! #er&i2e#.

" GST

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*e+r" GST

• *e+r" 1i"" 2""e2 m# % he 2+rie# " / re&e+e "e&i+, &er "i"eG&er+me+#.

• The 5 "e&e"# % G&er+me+ 1"! 2m'i+e here "e&ie# %rm #i+,"e +ih rrie re&e+e #hri+, rr+,eme+# m+, hem.

• E,- A#r"i

Pros

• I% "e&ie! + 2mrehe+#i&e '#e #i+,"e re. I 1"! re!2e e2+mi22"##i%i2i+ !i#e#.

• *m"i+2e 2# 1i"" re!2e i% +e GST re"2e# 36 T/i+, #e#.

•

He+2e7 Thi# %ree re#r2e# 2+ 'e %r mre r!2i&e r#i#.6/7/16


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• A 2mm+ mr8e %r I+!i 1ih + 2he28#7 i+er+%r+ier# r her 'rrier# r!e.

• I!e" #r2re %rm '#i+e## er#e2i&e ,reer #'i"%2i"ii+ % !e2i#i+ m8i+,.

• B#i+e##e# 1i"" h&e !e" 1ih +" +e / hri2m" 1ih +" +e /

• *+#mer# 1i"" 8+1 h1 m2h i# he i+!ire2 / re#mre r+#re+2.

• I+2re#e 2meii&e+e## # here 1i"" 'e + 2#2!i+, e

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*+#-

• r#i2 m!i%i2i+ re:ire! i+ 2+#ii+ % I+!i1ih h,e 2h+,e i+ he re#e+ /i+ i+%r#r2

• Se# m m ,ree ,i&e he 1er % /i!ee+! + he +i+ %r re#r2e#.

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State GST

• Only the states levy GST and the centre withdraws from the Or !T com"letely#

• This will si$nicantly enhance the reven%e ca"acity of the stared%ce there de"endence on the &entre#

• '$( )S!

• ! com"lete withdrawal of the &entre from the ta*ation of ints%""lies of $oods and services co%ld %ndermine the states, alevy their own ta*es#

.ros

• ed%ction of cascadin$ e0ect of ta*es as there will not -e talevels#

• even%e ca"acity of states enhanced and red%ced the de"en

the &entre#6/7/16


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*+#

• &entre access to reven%e for f%t%re needs red%ced#• aor amendments to the constit%tion of ndia will -e re•

The o"tion may not -e reven%e net%ral for individ%al stat-enet the hi$her income states while a red%ction in scwo%ld im"act dis"ro"ortionately the lower income states

• Ta* laws for each state+ will lac %niformity harmony demain$ and -%siness sta-ility#

• t wo%ld -e im"ractical to -rin$ inter+state services withi

of the state GST witho%t a si$nicant coordinatin$ s%""o&entre

• Governments -oth States and )nions will not nd it worre%ire com"lete chan$e in its nances and allocation ofedistri-%tion of ta*es will -ecome an iss%e#

• There may -e %nhealthy com"etition amon$ the states %

ta* str%ct%re as a tool to attract ind%stry within the state6/7/16


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8%al GST

• !s s%$$ested in the .oddar+!hmed worin$ "a"er G$oods can -e levied -y the states only and on servicthe centre only#

•

!T on services &entre wo%ld essentially "lay thecoordinatin$ role# even%es collected from the ta*atservices co%ld -e transferred -ac to the states#

• &ascadin$ co%ld -e com"letely eliminated#

• &onstit%tional amendment wo%ld still -e re%ired in

model since the states are not "resently em"owerd sales ta* on oods#

9O9+&onc%rrent 8%al

GST

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&onc%rrent 8%al GST

• The GST will -e levied -y -oth tiers of $overnments conc%rrently

•

There will -e central GST administered -y the central $overnmee*cise d%ty on service ta*< and state GST+ administered -y statGovernments;!T octroi entry ta*es etc###


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&ons

•

&om"liance costs may not red%ce si$nicantly#• There will always -e %ncertainty since states mi$

from the "rinci"les of %niformity#

• Sharin$ of reven%e amon$st the state will -e a ch!nd services "rovided nationwide will "ose challe

state level#

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'*"ected odel of GST n ndia

• n the ?%d$et S"eech for the year 2>>=+1>@inance inister Shri .rana- %hereeinformed the Ao%se (

BThe board contour of the GST Model isthat it will be a dual GST comprising of aCentral GST and a State GST C

8%al GST is e*"ected to -e im"lemented in ndia alon$ certain constit%tional amendmentDs#

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INDIAN MODEL DUAL GST-DUAL GST

!s "er the recommendations of Eoint Forin$ Gro;EFG


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@'!T)'S (

1# &entral GST to -e administered -y the &entralGovernment and there will -e a state GST to -eadministered -y State Government#

2# &entral GST will re"lace &'9!T and service ta

3# State GST will re"lace state !T#

4# Ta*a-le event in case of $oods wo%ld -e Isaleinstead of Iman%fact%re,#

5# Ta*es collected -y ocal ?odies wo%ld not $ets%-s%med in the "ro"osed GST system#

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6# &entral GST may s%-s%me (

ad


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7# State GST may s%-s%me (

a< !T

-< .%rchase Ta*#c< State '*cise 8%ty#

d< 'ntertainment Ta*#

e< %*%ry Ta*#

f< Octroi

$< 'ntry ta* in lie% of Octroi#

h< Ta*es on ottery ?ettin$ and Gam-lin$

ailways and &onstr%ction Sector mi$ht als

incl%ded in GST#6/7/16


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Pay in time and be tension fr6/7/16

models of gst

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