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GST PPT

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22 views17 pages

GST PPT

Uploaded by

joxes64530
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Goods and

Services
ABCASTaxs
ACTIVITY

Presented BY:
Kuldeep singh kannojiya
Hirdesh singh yadav
Mahindra Makhija
Harsh Gupta
Mohit Tiwari
Definition: GST is a single, indirect tax
on the supply of goods and services,
aimed at making India a unified market
by replacing multiple indirect taxes like

INTRODUCTI
VAT, excise duty, and service tax.

Objectives: Simplify indirect taxes,


ON TO GST increase compliance, boost revenue,
and enhance the economy.

Transformation: It replaces previous


indirect taxes like VAT, Service Tax, etc.
Objectives of GST
Implementation
Ease of Doing Business: Reducing the tax burden and avoiding tax-on-tax
(cascading effect).

Uniformity: Standardizing tax rates across the nation.

Revenue Generation: Increasing transparency and tax collection.

Boost Economic Growth: Facilitating trade and investment.


Tax Components:

CGST & SGST: Applied on intra-state


transactions, split between state and central
GST governments.

Structure
IGST: Levied on inter-state transactions and
imports, collected by the central government.

and
UTGST: Applies to Union Territories.

Input Tax Credit (ITC): A mechanism that allows

Mechanis businesses to claim credits for taxes paid on


inputs, eliminating the cascading tax effect.

m Compliance: Online GST portal enables easy


filing of monthly, quarterly, and annual
returns.
Previous System: Included various
indirect taxes like VAT, Service Tax,
Excise Duty, Sales Tax, etc.

Evolution of Challenges: Multiple overlapping


taxes, cascading effect (tax-on-tax),

GST - Pre- high compliance costs, and lack of


uniformity across states.

GST Tax Need for GST: To create a single

Structure national market, reduce tax


complexities, and improve revenue
collection.
Positive Impact:

Logistics Efficiency: Reduced logistics costs due to seamless


inter-state transport without multiple state-level taxes.

Supply Chain Optimization: Streamlined supply chain operations


and reduced warehousing costs.

GST Impact Competitiveness: Lower manufacturing costs boost


competitiveness in domestic and export markets.

on the
Manufacturin
Challenges:

Compliance Costs: High initial costs to shift to GST-compliant

g Sector
software and systems.

SME Challenges: Small manufacturers face higher compliance


burdens.
Advantages:

Standardized Tax Rates: Ensures price consistency across


regions.

Inventory Management: Simplified stock transfers between


states, especially benefiting large retail chains.

Cost Reduction: Reduction in cumulative taxes for end


consumers.

Challenges:

Complexity in Slabs: Multiple tax rates make pricing and billing


complex for varied retail products.

Compliance: Especially challenging for unorganized retail


sectors to adapt to GST norms.
GST Impact on
Services Sector
Benefits:
Cross-State Services: Simplifies tax
filing for businesses operating
across states (e.g., e-commerce).
Lower Cost of Service: ITC benefits
reduce input costs for service
providers.
Challenges:
Classification of Services: Difficulty in
correctly applying tax rates for
services spanning multiple states.
Frequent Changes: Ongoing changes in
rates and policies add to the
complexity.
hallenges Faced by Businesses in GST Implementati

Compliance Burden:
Businesses need to file multiple monthly and annual
returns, making it time-consuming.

Rate Variability:
Products and services fall under multiple slabs (0%,
5%, 12%, 18%, and 28%), creating complexity.

Technological Challenges:
Adopting the GSTN system and transitioning to e-
invoicing.
Government Measures to
Address Challenges

Simplification Efforts: Digital Advancements:

GSTR Forms Simplification: E-invoicing: Reduces fraud and


Introduction of simplified forms enhances data accuracy.
such as GSTR-1, GSTR-3B.
GSTN Improvements: Enhanced GST
Network (GSTN) portal to
QRMP Scheme:
improve user experience.
Quarterly filing for businesses with
turnover up to ₹5 crores. Tax Rate Adjustments: Regular GST
Council meetings have
rationalized and adjusted tax
slabs for clarity.
Survey/Interview
Methodology
Approach: Conducted surveys/interviews with
businesses from diverse sectors, including
manufacturing, retail, and services.

Sample Size: Surveyed 100 businesses across


multiple states.

Data Collection: Questionnaire included aspects


of compliance, cost implications, and impact on
business operations.
Key Findings from the Survey
Compliance
Complexity: Cost Impact:
60% found the return filing 70% reported lower operational
process time-consuming, costs due to simplified logistics.
especially smaller firms.

Sector-Specific
Differences: IT Adoption:
Retail and FMCG benefited more 50% reported difficulties in
than real estate and smaller adopting digital invoicing and GST
manufacturers. software.
Analysis of Findings

Positive Impact Negative Impact

Streamlined Unified Tax High Technological


Processes Structure Compliance Barriers
Burden
Logistics and Reduction in tax Many small firms
warehousing cascading has Especially for SMEs face challenges with
improvements. positively impacted with limited the required digital
final prices. resources infrastructure.
Comparative Analysis -
GST vs. Pre-GST Tax System

Cascading Tax Elimination: GST


eliminates the previous tax-on-tax effect.

Uniformity and Transparency: Compared


to the pre-GST era, taxes are now
uniform, reducing price disparity.

Compliance: GST has digitalized the


process but also added a higher
compliance requirement for firms.
Recommendations for
Improvement
Simplify Compliance: Reducing the number of returns
and simplifying documentation.

Tax Slab Unification: Move towards fewer tax slabs for


easier understanding and implementation.

Training Programs: Regular GST training, especially for


SMEs, to ease compliance challenges.

Improve GSTN Infrastructure: Invest in a more robust


digital infrastructure to reduce portal downtimes and
improve user experience.
CONCLUS
ION
GST has unified India’s tax structure, reducing
complexities and improving transparency. While
it has streamlined processes, businesses face
ongoing compliance and tech challenges.
Continued reforms and simplification will further
enhance its effectiveness, promoting growth
across all sectors.
Thank
s!
CREDITS: This presentation template was
created by Slidesgo, and includes icons by
Flaticon, and infographics & images by
Freepik

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