As a part of Words of Wisdom series, Student Career Advisory & Placement Support Team (SCAPS), Faculty of Sciences, Jain (Deemed-to-be University) had organized a session on "How GST affects your Life?" on 7 July 2017 at School of Sciences by Mr. Sushil Kumar Sharma, Managing Director and Head - Research at Stratadigm, ACA, Alumnus of IIM Bangalore. The speaker briefed about the basic idea of the GST, which is a unified indirect tax across the country on products and services, in which in the current system, the tax is levied at each stage separately by the Union government and the States at varying rates, on the full value of the goods.
The speaker stressed that in the GST system, the tax would be levied only on the value added at each stage in which it is a single tax (collected at multiple levels) with a full set-off for taxes paid earlier in the value chain. The speaker distinguished the transactions within a State that would have two components of GST - Central GST (CGST) and State GST (SGST) - levied on the value of goods and services. Both the Centre and the States would simultaneously levy GST across the value chain. The speaker put a light on the inter-State transactions, in which the Centre would levy and collect the Integrated Goods and Services Tax (IGST) which would be roughly equal to CGST plus SGST.
The speaker briefed the audience regarding the GST that would be more expensive in future which is so called Tax Deduction Source (TDS). In GST there are two types of taxation: Direct Taxation and Indirect Taxation. In Direct Taxation, a person earns, pays tax and tax is proportional to earning. Each person pays as per his earnings. In Indirect Taxation, the tax is levied on goods and services rather than income or profits. Indirect tax levies are classified into two: Central and State. But it is now common to everyone. Local tax is a State subject and the collections would go to state. But now every tax would go to the Union government.
The speaker overviewed the scenario before GST, which was service tax, VAT and now the buyer would have the same amount of tax that should go to the government. After the implementation of GST, the buyer would pay equal tax to the government and to the product manufacturer.
The speaker discussed various ways of paying GST online and informed about a rule made by Central Government that every shop should have electronic invoicing in a Tally data which will benefit India by single taxation, no holding of trucks, widening the tax base, unorganized sectors getting counted in GDP members and completely organized economy.
The session concluded with the felicitation to the speaker and vote of thanks.