GOODS AND SERVICE TAX ---AN EFFORT TO REDUCE DISPARITY
SUBMITTEDBY SABA MASOD ROLL NO:- B43 SECTION:- SM1001 REG. NO:- 11004459
1. TAX STRUCTURE IN INDIA.
2. LIMITATION OF EXISTING TAX STRUCTURE.
3. INTRODUCTION OF
GOODS AND SERVICE TAX(GST)
4. REVIEW OF LITERATURE
6. STRUCTURE OF GST
7. OBJECTIVES OF GST
8. IMPACT OF GST
9. BENEFITS OF GST
IF WORDS ARE CONSIDERED TO BE A SIGN OF GRATITUDE THEN LET THESE WORDS CONVEY THE VERY SAME.I AM HIGHLY INDEBTED TO LECTURER MR VISHVAS CHAKRANARAYAN, WHO HAS PROVIDED ME WITH THE NECESSARY INFORMATION AND ALSO FOR THE SUPPORT AND HIS VALUABLE SUGGESTIONS ON BRINGING OUT THIS TERMPAPER IN THE BEST POSSIBLE WAY. I FEEL GREAT PLEASURE TO CORDIALLY THANK TO ALL FACULTY MEMBERS OF MANAGEMENT DEPARTMENT OF LSM WHO SINCERELY SUPPORTED ME WITH THE VALUABLE INSIGHTS INTO THE COMPLETION OF THIS TERMPAPER AND I AM THANKFUL TO THAT POWER WHO ALWAYS INSPIRE ME TO TAKE RIGHT STEP IN THE JOURNEY OF SUCCESS IN MY LIFE.
Goods and Services Tax (India)
Tax structure in India
Taxes in India are levied by the Central Government and the State Governments. Some minor taxes are also levied by the local authorities such as Municipality or Local Council. The authority to levy tax is derived from the Constitution of India which allocates the power to levy various taxes between Centre and State. Some of the important Central taxes
Some of the important State taxes
State Sales Tax
Works Contract Act
LIMITATION OF EXISTING TAX STRUCTURE IN INDIA
Originally, the taxes on the sale of goods were levied in terms of the respective Sales Tax/Trade Tax enactments and the 'entry of goods' was subject to tax under the respective State Entry Tax enactments and this scenario prevailed till the reform process set in whereupon these levies were replaced by VAT.However the shift to VAT did not put to an end to cascading realities Service tax was introduced in 1994. Current service tax rate is 10.30%. The scope of service tax has since been expanded continuously by subsequent Finance Acts and now nearly 109 services are covered. But there are many service sectors which are out of purview of Central Government which can generate more revenue to Government. Despite of existence of multiple taxes like Excise, Customs, Education Cess, Surcharge, VAT, Service Tax etc. GDP of India is much lower than GDP of countries like USA, China and Japan. India has miles to go to achieve this level. Therefore, the Indirect Taxes are therefore urgently required tobe rationalized and unified. If the G.S.T. is introduced it would certainly increase the volume of tax collection. The implementation of GST would ensure that India provides a tax regime that is almost similar to the rest of the world. It will also improve the international cost competitiveness of native goods and services. Further it will also encourage an unbiased tax structure that is neutral to business processes and geographical locations.
INTRODUCTION OF GST IN INDIA
The Goods and Services Tax is a value added tax, which is to be implemented in India by April 2011 . The GST will replace all indirect taxes levied on goods and services by the Indian Central and State governments. It is aimed at being comprehensive for most goods and services with minimum exemptions. India is a federal republic and therefore the GST will be implemented concurrently...