The document discusses the Goods and Services Tax (GST) implemented in India. It notes that GST aims to simplify India's tax regime by replacing multiple indirect taxes levied by central and state governments with a single tax applicable to both goods and services. GST is expected to reduce costs for businesses and consumers by eliminating cascading taxes and enabling seamless credit for input taxes paid. It will be comprised of three components: CGST (Central GST) collected by the central government, SGST (State GST) collected by state governments, and IGST (Integrated GST) for inter-state transactions.

1. Dr. Harishchandra S B
MBA, M.Phil, PhD
Dept of Management Studies [MBA], APPA Institute
of Engineering & Technology, Kalaburagi, Karnataka-
India
harish.bramhaver@gmail.com 09945678951.

2. Abstract:-
 Goods and Service Tax or GST as it is known is all set to be a
game changer for the Indian Economy in India. Traditionally
India’s tax regime relied heavily on indirect taxes. Revenue from
indirect taxes was the major source of tax revenue till tax
reforms were undertaken during nineties.
 The major argument put forth for heavy reliance on indirect
taxes was that the India’s majority of population was poor and
thus widening base of direct taxes had inherent limitations.
 But the Indian system of indirect taxation is characterized by
cascading, distorting tax on production of goods and services
which leads to hampering productivity and slower economic
growth.
 There are endless taxes in present system few levied by Centre
and rest levied by state, to remove this multiplicity of taxes and
reducing the burden of the tax payer a simple tax is required
and that is Goods and Service Tax (GST).

3.  Introduction
 There are different indirect taxes applied on goods and services
by central and state government.
 GST is intended to include all these taxes into one tax with
seamless ITC and charged on both goods and services.
 Thus excise duty, special additional duty, service tax, VAT to
name a few will get repealed and will be added into GST. For
this, GST will have 3 parts CGST, SGST and IGST.
 The central taxes like excise duty will be subsumed into CGST
and state taxes like VAT into SGST Conceptually GST is
expected to have numerous benefits like reduction in
compliances in the long run since multiple taxes will be
replaced with one tax.
 It is expected to bring down prices and hence the inflation
since it will remove the impact of tax on tax and enable
seamless credit.

4.  GST = is a combination of
 GST = CGST = (SGST OR IGST)
 C – Central GST which is paid to central Govt
 S – State GST which is paid to the state Govt
 I – IGST Integral – which come when goods & services
moves within a states
 Example; Product ‘A’ is manufactured in MP and sold in
UP, so IGST distributed b/w the states. In this case SGST
will not applicable.
 It is expected to generate revenue for the country as the tax
base will increase as the GST rate will be somewhere
around 27% with both goods and services covered. It is also
expected to make exports from India competitive and India
a preferred destination for foreign investment since GST is
a globally accepted tax.

5.  Tax is the money which is paid to the government it is
imposed on your income, business profits, cost of
goods and services and the transaction. So that
government can use this money in public interest and
to pay of the national debt.

6. There are actually two types of taxes
 Direct Taxes and
 Indirect Taxes
 The direct tax, which’s liabilities, cannot be shifted like,
 Corporate taxes
 Income taxes
 Wealth Taxes

 But indirect taxes who’s liabilities can be shifted to
someone else… like
 Central excise taxes
 Sales Tax
 Service Tax

7.  GST is a point of interest is indirect taxes which
includes
 excise duty
 Service Taxes
 Additional Duty of Custom
 Value Added Tax
 Entertainment tax
 Luxury Taxes etc..
 The question is how GST system is different from
current system in India

8.  Cheaper than the current system
GST SYSTEM
Raw material Manufacturing cost
50 + 50 = 100
10% of his 50 from his profit
Selling price will not increase
The cost of product for distribution will be 100 + 20 = 120
He pay the tax of 2 of his profit
Wholesaler do the same by adding 120+20=140
CURRENT SYSTEM
Manufacturer 50+50=100
Raw material 10% tax
Distributor 110+20=130 (13%)
Wholesaler 143+20=163 (10% tax)
Retailer 179.3+20=199.3 (10% tax)
Consumer 219.23

9.  Retailers add his 140+20=160 and pay the tax of his 10%
 So the product is compare the product is 59.23 Rs.

 GST has 5 categories in India
 0% categories which will applies to Foodgranes etc
 5% categories which will applies mostly and widely
used item
 12% categories normal items
 18% categories normal items
 28% categories luxury items

10. Conclusion
 GST is levied on all transactions such as sale, transfer,
purchase, barter, lease, or import of goods and/or services.
India will adopt a dual GST model, meaning that taxation is
administered by both the Union and State Governments.
Transactions made within a single state will be levied with
Central GST (CGST) by the Central Government and State
GST (SGST) by the government of that state.
 For inter-state transactions and imported goods or services,
an Integrated GST (IGST) is levied by the Central
Government. GST is a consumption based tax, therefore,
taxes are paid to the state which the goods or services are
consumed not the state in which they were produced.
 IGST complicates tax collection for State Governments by
disabling them to collect the tax owed to them directly from
the Central Government. Under the previous system, a state
would have to only deal with a single government in order
to collect tax revenue.

11. References
 "A quick guide to GST rates in 2017". Economic Times. Retrieved 21
June 2017.
 "Finance minister Arun Jaitley may hike service tax to 16-18% in
Budget", The Times of India, 30 January 2017
 "Looking back at GST’s journey: How an idea is now near
reality", Indian Express, 31 March 2017
 "What is GST, how is it different from now: Decoding the indirect tax
regime", Business Standard, 17 April 2017
 "GST may swallow all taxes but cess", Business Standard, 20 September
2016
 "On Notes Ban, Firm Warning From West Bengal To Centre: GST Now
At Risk",NDTV, 30 November 2016
 "GST: The illustrative guide to how transactions will take place after tax
reform".Money Control. Retrieved 10 May 2017.
 "'States on Board, GST Launch from April '16'". newindianexpress.com.
 "States asked to pass GST bills by May end - GST Star". gststar.com.
Retrieved19 April 2017.