...Research Review Vol. 4 (1) www.buget-finante.ro Goods and Services Tax (GST) in India: prospect for states by Mohd. Azam Khan1 and Nagma Shadab2 Department of Economics, Aligarh Muslim University, India Abstract: Goods and services tax (GST) is a broad based and a single comprehensive tax levied at every stage of the production and distribution chain with applicable set-off in respect of the tax remitted at previous stages. It is basically a tax on final consumption integrates the union excise duties, custom duties, services tax and state VAT. Presently around 140 countries have adopted the GST pattern, including India. The GST would be beneficial for the consumers as it reduces the final burden of taxation. For Government it leads the reduction of tax compliance efforts and administrative costs and for business units it leads transparency, complete set-off and removal of cascading effect of taxation. It is in this background that the present paper tries to explain the significance of GST in India and its prospects for states to generate revenue and ensure transparency in tax structure. This paper is organized into seven sections. Section two presents justification for dual structure of GST in India. The third part presents the rate structure under GST work in India. The fourth segment is concerned with the working of GST in India. The fifth part shows the international experiences of GST at state level in India. The seventh and final part is related to conclusion and...
Words: 8698 - Pages: 35
...What is GST? The Goods and service tax is an initiative towards a reform in which this tax will replace all the indirect taxes in the Centre as well as the State, which can be levied in case of a sale being made or a service being provided. It is especially necessary in the current scenario, due to the degrading effects of the present tax system of CENVAT and State Vat system and the other complexities that prevail in the tax system of India. Some of the taxes that will be replaced under the central taxes are Service Tax, Surcharges, Central Excise Duty, Customs Duties and other Excise Duties. Some of the taxes that will be replaced under the state taxes are Luxury Tax, Entertainment Taxes, Tax on gambling and betting, Lottery Taxes, surcharges etc., as long as they are related to entry tax and the supply of goods and services. Due to reasons, which are social, environment related as well as those related to import dependence, certain products like high-speed diesel, alcohol (human consumption) is not included. Also, the direct taxes will be exempted from the GST, including capital gains, corporate and income tax. To better understand GST, consider the following: There exists a manufacturer, retailer and dealer (wholesaler). Goods and Service Tax is 10%. Now assume that the manufacturer buys the raw materials worth Rs 100 for Rs 140. Therefore, the total GST he will pay is Rs 4 by getting a tax credit of Rs 10 on the raw materials he had purchased. Now, the...
Words: 2236 - Pages: 9
...Introduction The idea of introducing a flat consumption based Goods and Services Tax (GST) in Malaysia has been floated since 1989. It now seems as though this may become a reality in the 2014 Budget, with implementation beginning within 18 to 24 months at an initial rate of 4 % on the supply chain. The plan to overhaul the tax system has begun to gain momentum as the government deals with an increasingly weak economic outlook, combined with global uncertainty. While not at the emergency levels of many advanced Western European economies, Malaysia has not run a structural budget surplus since the Asian Financial Crisis hit in 1997. Federal government debt as a percentage of Gross Domestic Product (GDP) currently sits at 55.4 %.1 For the time being, this is manageable, but it is the government’s ability to reign this spending in, as well as lack of budgetary reform that has led ratings agency Fitch to downgrade Malaysia’s credit outlook to negative this year. The government’s recent 20 sen cut to the fuel subsidy and increasing speculation of a GST framework to be included in the upcoming budget can be seen as evidence that they are trying to remedy both structural and cyclical economic challenges. Furthermore, for far too long there has been an overdependence on the revenue generated from oil and gas dividends, which currently account for over a third of total government revenues. 2 A GST offers a single unified system where the tax burden is equally shared between the services...
Words: 6974 - Pages: 28
...THE PERCEPTION OF TAXPAYERS TOWARD GOODS AND SERVICES TAX (GST) IMPLEMENTATION IN MALAYSIA CHAPTER ONE - INTRODUCTION 1.1 Backgroud of Study Malaysian taxation system is generally divided into two, which are direct taxes and indirect taxes. Indirect taxes are controlled by the Royal Malaysian Custom Department (RMCD) and it consists of four components such as excise duties, customs duty, sales tax and service tax. Direct taxes are under the control of the Inland Revenue Board of Malaysia (IRBM). The IRBM is responsible for all policies relating to direct taxes such as income tax of individual and business, petroleum income tax, real property expansions tax, and stamp duty. From the government perception, taxation is a vital economic tool because it can be employed to regulate the economy, to invigorate economic growth through the granting of fiscal incentives as a principal aim of implementing tax policies and to provide funds for development projects (JeyapalanKasipillai, 2005). The contribution of direct taxes and indirect taxes to government revenue in 2009 amounted to RM78.375 billion (49.4%) and RM28.129 billion (1 7.73%), respectively. This shows that taxation contributes more than 60% to the Malaysian government revenue. Recently, the Malaysian government established the implementation of goods and services tax (GST) to replace Sales Tax and Services Tax (SST). The GST plan was first raised in 1988 but at the time it was considered unnecessary because the sales...
Words: 15209 - Pages: 61
...Portfolio: Business and financial information Article 1 Source: News.com.au 20 May 2012 The name of the article is “Pressure on to secure staff”. It relates to Australia’s private owners struggling to retain and attract quality staff – but are also pulling back from strategies that would allow them to do so. PwC’s winter 2012 Private Business Barometer finds employment is a major challenge for private firms. The report shows about 39 per cent of businesses intend to pay bonuses, down from 50 per cent in March 2011, while fewer businesses intend to offer working hours or competitive salaries (both down from 41 per cent to 24 per cent), working-from-home conditions (19 per cent to 13 per cent) and lifestyle-based leave (16 per cent to 6 per cent). PwC partner Michael Browne says firms have cut bonuses and other recruitment strategies in response to more uncertain economic times. By not adequately investing now businesses could face problems retaining staff in the future. This can affect their profitability, and also expectations, objectives and needs. “Businesses are looking to cut costs, so you have this trade-off with staffing strategies” Michael Browne says. Businesses can improve their retention of valued staff by planning to: * Ensure staff remain engaged in their roles * Promote a healthy work/life balance approach * Have regular career conversations with staff These strategies would be relevant to the development of plans to provide...
Words: 4387 - Pages: 18
...18wefqewfqewfqwefqwefqwefqwe fqwefqewfq 5wefqwefqwefqwefqwefqwefqwef Appendix 19qwefqwefqefqefqwefefwefweqfwefwqefwef 1. INTRODUCTION The Goods and Services Tax (GST) can be defined as a value-added tax that is levied on most goods and services sold for domestic consumption. The tax is implemented to provide revenue for the federal government. In Malaysia, the GST was scheduled to be implemented during the third quarter of 2011 but the implementation was delayed until the 1 st of April 2015. The Goods and Services Tax was tabled for the first time at the ‘Dewan Rakyat’ on 16 th of December 2009. Since there is a high number of criticism, it was delayed. On 25 th of October 2013, during the government’s reading of the National Budget 2014, the Malaysian Prime Minister, Dato’ Sri Najib Razak announced a GST tax of 6% will be implemented starting on the 1 st of April 2015 to replace the Sales and the Services tax. The implementation of the GST is a part of the government’s tax reform program to enhance the capability, effectiveness and transparency of tax administration and management. Since the government’s reading regarding GST in the National Budget 2014, there are a lot of reactions by Malaysians. Many of them were unhappy with the news and some of them are happy with the announcement of GST. Each party has their own thoughts and opinion in regards to the government’s implementation. In this report, we will present to you our findings for our study regarding...
Words: 4702 - Pages: 19
...OVERVIEW Overview of GST GST (good and service tax), other words it also known as VAT (value added tax). It have implemented in many countries throughout the world. Currently there are 170 counties in the world that have implemented GST /VAT. NO REGION No of country 1 ASEAN 7 2 Asia 19 3 Europe 53 4 Oceania 7 5 Africa 44 6 South Africa 11 7 Caribbean, Central and North America 19 Table 1: No of countries implement GST/VAT Sources: Ministry of Finance GST is a multi-stage tax system, this is due to its nature which the tax is collected based on the supply of goods and services at each of the supply chain from the supplier to the retailer stage of the distribution. Even though GST is imposed at every stage of the supply chain, but the tax element will be not become a part of the cost of the product, because the GST paid on the business inputs is claimable as input tax. Where the business will pay the GST as output tax and claim for the input tax from the customs. In addition, it does not matter how many stages where a particular goods and services goes through the supply chain because the input tax incurred at the previous stage is always deductible by the businesses at the next in the supply chain. GST consider as a broad based consumption tax, which includes all sectors of the economy. In Malaysia the GST have been establish in a very clear manner, for example all goods and services made in Malaysia...
Words: 15950 - Pages: 64
...Economic Revival June 2012 June 2012 © Confederation of Indian Industry Copyright © 2011 by Confederation of Indian Industry (CII), All rights reserved. No part of this publication may be reproduced, stored in, or introduced into a retrieval system, or transmitted in any form or by any means (electronic, mechanical, photocopying, recording or otherwise), without the prior written permission of the copyright owner. CII has made every effort to ensure the accuracy of information presented in this document. However, neither CII nor any of its office bearers or analysts or employees can be held responsible for any financial consequences arising out of the use of information provided herein. However, in case of any discrepancy, error, etc., same may please be brought to the notice of CII for appropriate corrections. Published by Confederation of Indian Industry (CII), The Mantosh Sondhi Centre; 23, Institutional Area, Lodi Road, New Delhi-110003 (INDIA), Tel: +91-11-24629994-7, Fax: +91-11-24626149; Email: info@cii.in; Web: www.cii.in Confederation of Indian Industry The Mantosh Sondhi Centre 23, Institutional Area , Lodi Road, New Delhi – 110 003 Tel.: 011-24621874, 24629994-97 : Fax: 011-24626149 Website:www.cii.in Edited, printed and published by: Chandrajit Banerjee, Director General, CII on behalf of Confederation of Indian Industry from The Mantosh Sondhi Centre, 23, Institutional Area, Lodi Road, New Delhi –110 003 Tel: 91-11-24629994-7 Fax: 91-11-24626149 email:...
Words: 19794 - Pages: 80
...G.SAI KIRAN 1226113115 NON ALCOHOLIC BEVERAGE INDUSTIRY: SOFT DRINKS SUMMERY: Non-alcoholic beverages sector, which is currently being looked at as a non-corporate small- and medium-scale dominated segment, needs extensive reforms in order to develop as a complete corporate sector. In 1993, the consumption of aerated beverages in India was a meager three servings, per person, per annum. Cut to 2013, industry estimates cite that Indians have a per capita consumption of 14 servings. While that’s small when you compare the global average of 94 servings, India, because of the sheer weight of its population, is a huge force to reckon with for the world’s leading food and beverage corporations. Currently the influx of FDI in overall food processing sector is 1.8% of the total FDI ($147.08 billion) India got between 2001 and 2011. Out of this, the non- alcoholic beverage sector got approximately $19.44 million under automatic route while its contribution to India’s GDP was around $1.6 billion. Companies under the Indian beverages sector have operations in more than one state and the difference in taxation and other factors create barrier for the sector. Issues like implementation of GST (Goods and Services Tax) would certainly help the entire F&B industry. Inflation has got entrenched and monetary policy does not have any or has very little impact on food prices and fuel prices, food grain prices were moving upwards faster than other food items. The increase in the general...
Words: 2298 - Pages: 10
... Pages | 1. Introduction to GST 4 1.1. Background Of Study 4 1.2 What is GST 6 1.3 Why is GST implemented 8 1.4 Difference between GST and SST 9 1.5 General operations of GST 10 1.5.1 Goods and Services Tax (Zero-rated supply) Order 2014 11 1.5.2 Goods and Services Tax (Exempt supply) Order 2014 132. Content 14 2.1 Effect of implementation of Goods Services Taxes (GST) in Malaysia 14 2.1.1 GST are regressive tax or progressive tax? 14 2.1.2 Effect of implementation of GST on inflation based on CPI 16 2.1.3 Effect of implementation of GST on the household income 19 2.2. Impact of GST on sub regions of Malaysia ...
Words: 12413 - Pages: 50
...FEDERAL WEALTH TRANSFER TAXATION: CASES AND MATERIALS FEDERAL WEALTH TRANSFER TAXATION: STUDY PROBLEMS SIXTH EDITION 2013 Supplement by PAUL R. MCDANIEL James J. Freeland Eminent Scholar in Taxation and Professor of Law University of Florida Levin College of Law JAMES R. REPETTI William J. Kenealy, S.J. Professor of Law Boston College Law School PAUL L. CARON Professor of Law Pepperdine University School of Law Herzog Summer Visiting Professor in Taxation University of San Diego School of Law FOUNDATION PRESS © 2013 © 2013 By FOUNDATION PRESS ISBN PREFACE This supplement is designed to update our casebook and accompanying study problems book: Federal Wealth Transfer Taxation: Cases and Materials (6th ed. 2009), and Federal Wealth Transfer Taxation: Study Problems (6th ed. 2010). We hereby grant permission to users of Federal Wealth Transfer Taxation to distribute copies of this supplement to students, either in hard copy or in electronic form. This supplement is current through August 1, 2013 and incorporates The American Taxpayer Relief Act of 2012 (Pub. L. No. 112-240, 126 Stat. 2313 (2013)) and The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (Pub. L. No. 111-312, 124 Stat. 3296 (2010)). We want to thank Jack Bogdanski (Lewis & Clark) for his detailed comments on the prior edition of these books. This is the third update to Federal Wealth Transfer Taxation since the July 16, 2010 death...
Words: 36105 - Pages: 145
... 3.6 CAGR: 13.9% Rising income and demand for quality products to boost consumer expenditure 1.0 2010 2020E India consumption expenditure (USD trillion) 1.3 Consumer expenditure estimated to be USD3.6 trillion by 2020 vis-à-vis USD1.0 trillion in 2010 CAGR: 12.7% Indian retail one of the fastest growing markets in the world due to economic growth 0.5 Retail market in India to reach USD1.3 trillion by 2020 from USD0.5 trillion in 2012 2020E 2012 Indian retail market size (USD trillion) Favourable government policies to boost investor confidence and thereby investments across modern retail formats CAGR: 30.0% 27 2012 220 2020E Modern retail market to expand to USD220 billion by 2020 from USD27 billion in 2012 Indian modern retail market size (USD billion) Source: PWC, Economic Times, Aranca Research Notes: CAGR - Compound Annual Growth Rate, E - Estimate CAGR: 7.6% 100 Robust consumption, rural markets to augment FMCG market 12 2006 2025E FMCG market expected to increase to USD100 billion by 2025 from USD12 billion in 2006 FMCG market in India (USD billions) 67,100 CAGR: 19.6% Increasing participation from foreign and private players to boost retail infrastructure 11,192 Modern retail stores projected to reach 67,100 by 2016 from 11,192 in 2006 2016E 2006 Modern retail formats (store counts) 8,500 Rising number of tier-2 and tier3 cities to enhance supermarket...
Words: 4638 - Pages: 19
...on the attached Rubric, your assignment will be graded on your use of appropriate economic theory and concepts, clarity of exposition and overall quality of your answers. Your answers should follow “Guide to assignment writing and referencing”, available at this link: http://www.deakin.edu.au/currentstudents/assets/resources/study-support/study-skills/assignref.pdf. Answer all questions. Limit the total word count of your assignment to less than 3,000 words. Depth is encouraged over breadth: that is, it is more important that you demonstrate you understand a concept fully, rather than talk about 3 related concepts only cursorily. You are encouraged to use diagrams/examples in your answers when appropriate. 40 marks. Allocation as indicated next to the question. Your score on this assignment contributes towards 40% of your final score for this unit. This assignment must be submitted electronically on D2L (DSO) Dropbox area by all students by 11:59pm on the due date. No hard copy is required. Print your name and student ID clearly on the first page of your answers. Please check the Academic Honesty and Misconduct section in the...
Words: 3505 - Pages: 15
...responsible for any view, data, figure etc. expressed in the articles by the author(s). Maps are notational . All Disputes are subject to the exclusive jurisdiction of competent courts and fourms in Delhi/New Delhi only. Selected Articles from Various Newspapers & Journals Page No. 67 91 Cyberspace Page No. 93 Regional Rural Banks The Mauryan Empire Model Paper G.S. Paper I 94 117 Join Online Coaching For IAS Pre & Mains Exams http://iasexamportal.com/civilservices/courses Project Mausam and Maritime Silk Route SWACHH BHARAT MISSION Throughout the world around 2.5 billion people do not have toilets to use, out of those 250 crore people 65 crore live in India alone. In order to solve this big challenge government of India has launched “Swachh Bharat Mission” on the birth anniversary of Mahatma Gandhi and former Prime Minister Lal Bahadur Shastri. Due to magnanimity of the problem solving it will not be easy. Government has to face the problems associated with extremely poor hygienic conditions and most significantly government has to fight with attitude towards cleanliness. Poor sanitation is linked to various social as well as economic factors like extreme poverty, educational level, religious affiliation and society...
Words: 80076 - Pages: 321
...Democracy and Development in India: A Comparative Perspective By Pranab Bardhan University of California at Berkeley To most theorists of democracy in the West, India is an embarrassing anomaly and hence largely avoided. By most theoretical stipulations India should not have survived as a democracy: it’s too poor its citizens largely rural and uneducated its civic institutions rather weak. It is a paradox even for those who believe in a positive relationship between economic equality or social homogeneity and democracy. India’s wealth inequality (say, in land distribution, and even more in education or human capital) is one of the highest in the world. Indian society is also one of the most heterogeneous in the world (in terms of ethnicity, language, caste and religion), and social inequality, a legacy of the caste system, is considerable. Yet this country, with the world’s largest electorate (it is now larger than the electorate in North America, Western Europe, and Japan combined), keeps lumbering on decade after decade as a ramshackle, yet remarkably resilient, democratic polity. Of course, depending on the defining features of democracy the depth of Indian democracy may be rather limited. It is useful to keep a distinction between three general aspects of democracy: (a) some basic minimum civil and political rights enjoyed by citizens, (b) some procedures of accountability in day-to-day administration under some overarching constitutional rules of the game, (c) periodic...
Words: 3182 - Pages: 13
