1. GST - Meaning
GST is an indirect tax to replace taxes levied by the central and state governments.
It is governed by GST Council, headed by the Union Finance Minister of India, Arun Jaitley
GST is a Consumption based tax on goods and services but not on Units Manufactured

2. History of GST
The reform process in indirect tax in India was started in 1986 by V P Singh by introduction of Modified Value Added Tax (MODVAT)
It is introduced as The Constitution Act 2017, following the passage of Constitution 122nd Amendment Bill
A 21-members select committee was formed to look into the proposed GST law

3. Why GST
The current system with no GST implies that tax is paid on the value of goods and margin at every stage of the production process.
This would translate to a higher amount of total taxes paid, which is carried down to the end consumer in the form of higher costs for goods and services.
Implementing the GST system in India is therefore, a measure that will be used to reduce inflation in the long run, as prices for goods will be lower.

4. Different Tax Rates of GST
0% milk, butter milk, curd, natural honey, fresh fruits
and vegetables, flour, besan, bread, prasad, salt,
stamps, judicial papers, printed books, newspapers,
bangles, handloom
5% packaged food items, milk powder, branded
paneer, Coffee, tea, spices, pizza, bread, rusk, 
Transport Services - (Railways, air transport)
Small restaurants

5. Different Tax Rates of GST (Contd)
12% - butter, cheese, ghee, dry fruits in packaged form, animal Fat, Namkeen, Ayurvedic medicines, tooth powder, agarbatti, Colouring books, Drawing books, etc.,
18% -  Flavoured refined sugar, pasta, cornflakes, pastries and Cakes, preserved vegetables, jams, sauces, soups, ice cream, instant food mixes, mineral water, AC hotels that serve liquor.
telecom services, IT services, branded garments. Etc.,

6. Different Tax Rates of GST (Contd)
28% Bidis, chewing gum, molasses, chocolate not containing Cocoa, waffles and wafers coated with choclate, pan masala.
Special rate of 0.25% on rough and semi-precious stones and
3% on gold 

7. Taxes will be bound together by the GST
Central Excise Duty
Luxury Tax Food Tax
Entertainment Tax
Advertisement tax Octroi
Entry Tax Commercial Tax
Purchase Tax Value Added Tax (VAT)
Central Sales Tax (CST)

8. Important Points on GST
France was the first country to implement the GST in 1954, and since then an estimated 160 countries have adopted this tax system.
Some of the countries with GST include Canada, Vietnam, Australia, Singapore, UK, Spain, Italy, Nigeria, Brazil, and South Korea.

9. Objections or Challenges of GST
In the Name of TDS, most of the Salaried people and formerly employed paying Tax for their income at the source itself. So they need to pay twice while purchasing goods and availing services.
Again there are different types GST, like CGST, SGST, etc., - Why?
Tax Burden of Ordinary People not reduced?

10. Objections or Challenges of GST
No Tax on Manufacturing Process? So who will be the real beneficiary!...
There will be no GST on the sale and purchase of securities. Who trades and Invest in Securities?
Why we can introduce charging Direct Tax alone at very low rate to abolish all the Indirect Taxes like Sales Tax, Octroi, GST, etc.,

11. Thank you and Bye
Dr. A. MOHANASUNDARAM. Dean – Commerce Studies, SNMV College of Arts and Science. Coimbatore –