GST for MBA Students
Recently a Corporate Connect session was held at our Globsyn Knowledge Campus on Goods and Service Tax (GST) where Ms. Shivani Shah, CA, and owner of Shivani Firm and Associates had an interactive session with the MBA students of Globsyn Business School.
The nuances of the topic discussed in the session are written below:
- India’s biggest indirect tax reform in the form of Goods and Services Tax (GST) was introduced in India from 1 July 2017. The idea of GST was mooted long back in the year 2006-2007 which took concrete shape by being passed in the Parliament on August 8, 2016. The benefits of GST are as follows:
- Easy for Tax payer and assessee
- To avoid double taxation- cascading effect has been eradicated by this
- Uniformity of tax
- Concept of CST is no more present
- GST has replaced most of the indirect taxes such as VAT, CST, Entertainment Tax, Luxury Tax, Central Excise Duty etc. As all the states have accepted this form of tax, so it can be said that ‘One Nation, One Tax’ and there shall be no disparity in charging taxes in different states of the country. Every state has their own GST Act.
Types of GST discussed are:
- C-GST (Central Goods and Services Tax) – It is applicable on suppliers dealing within the states as input tax credit on CGST is given to states. Taxes collected will be shared within the central authority body.
- S-GST (State Goods and Services Tax) – It is applicable on suppliers dealing within the states. Taxes collected will be shared within the states authority body.
- I-GST (Integrated Goods and Services Tax) – It is applicable on suppliers dealing interstate business and import transaction.
Other points discussed during the session on GST for MBA Students are:
- Intra State Supply – This is applicable in case of CGST and SGST; it’s basically in the same location.
- Inter State Supply – Here location of supply is provided and location of delivery is different. It is applicable in case of IGST.
Now we have only the concept of SUPPLY for a taxation event and no manufacturing (which included Excise Duty introduced in 1947), sales (which included VAT) and services tax (which included Service Tax). Tax rates under GST are as set at 0%, 5%, 12%, 18% and 28% for various goods and services, and almost 50% of goods & services comes under 18% tax rate.
Due to different types of taxes the Indian tax structure became so much complex and the economy became complex too. The small scale industries suffered very much due to this. To make tax structure simple and to reduce tax liabilities GST was introduced. It is very much simple and easier to pay tax for both customer and seller. Implementation of GST is one of the best decisions taken by the Indian Government. For the same reason July 1, is celebrated as Financial Independence Day in India.
The Corporate Connect session on GST for MBA students by Ms. Shivani Shah was really of great help. We got an opportunity to participate in the session. Last but not the least gratitude of thanks to Globsyn Business School for arranging such endeavouring sessions where we got to learn so much.
PGDM Batch – 07
Globsyn Business School