Gst update # 2: pre & post analysis of gst

S. NO.

Point of Difference

Current Scenario under Indirect Tax

Scenario after implementation of GST

1.

Types of

Taxes

1. Central Taxes:-Central Excise/Custom Duty, Central Sales Tax on Goods and Service Tax charged on Services, Surcharge & Cess.

2. State Taxes: -State Vat, Sales Tax Deducted at Source, WCT, Luxury Tax, Entertainment Tax, Tax on Lottery, Surcharge & Cess.

A dual layered tax system with both Central and State GST levied on same base on all the goods and services except  Petroleum ,High Speed Diesel, Motor spirit and Natural Gas to be brought at a later date, subject to recommendation of GST Council.

One nation and one indirect tax structure throughout the country

2.

Basis

of Levy

Taxable at place of

1. Manufacture / sale of goods

2. Rendering of services

Taxable at the place of consumption or a destination based tax or when supply takes place.

3.

Threshold Limits

1. Central Excise-1.5 Crores

2. VAT-Varies from Rs. 5 to 20 Lacs from state to state

3. Service Tax- Rs.10 Lacs

1. Northeastern and hill states with annual turnover below Rs.10 lakh

2. Others - Rs.20 lakh

4.

Filing of Returns

1. Uniform Returns pattern for central excise and Service Tax.

2. VAT-Varies from State to State.

1. Uniform Returns patterns under GST throughout the nation.

5.

Input Credit System

1. Excise / service tax dealer can interchange claim their input credit  with their output liablity subject to prescribed conditions.

2. Output Vat liablity is allowed to set off with the input vat only.

1. All registered dealers can claim input while paying output tax liablity in GST.

6.

Manner of Input

1. Input can be taken on Self declaration  basis in many cases.

2. Some states allows availment of input credit via online / after cross checking purchases with vendors

1. In all cases, the input credit will be verified online after cross checking with the purchasing party.