Good morning, good evening, good afternoon, whoever is
watching me right now, a hearty welcome to that person.
Friends, my name is C.A. Shreyagupta and I am your friend,
your companion, your companion.
I am your fan in this GST discussion.
Friends, how are you all?
Great, fun, outside, good?
Is everything fine at home, sir?
It should always be like this.
Come, sir.
We had covered the topics of GST introduction.
I will take 2-3 minutes to revise what we have studied in
4-5 lectures.
Friends, first of all, what was GST?
Goods and Services Tax.
First of all, it was an indirect tax.
Indirect tax means the money, the tax you have to deposit
to the government.
But you do not deposit that tax from your pocket.
You collect that money from the customer and deposit it to
the government.
Then we studied what is its biggest branch?
Goods and Services Tax.
A tax which is imposed when you sell goods.
It is a matter of common sense.
Goods and Services Tax.
A tax which is imposed when you sell goods or you supply
services.
You sell goods, you sell goods or you provide services.
So, whatever bill you raise, you will add GST separately.
You will collect GST from the customer.
But do you have to keep that money with you?
You will have to deposit that money to the government.
Definitely.
Then we saw what was the need to bring GST?
Sir, the problem was that the biggest feature of indirect
tax was that whenever you purchase goods, the tax you pay
to the seller at the time of purchase, you are a customer,
you are buying goods, the tax you pay to the seller at that
time, you used to get a credit for that tax.
When you used to sell that goods in the future, when you
used to supply in the future, when you supply in the
future, you will also collect some tax from the customer
which you have to deposit to the government.
When you collect that tax from the customer at the time of
sale, that tax will be deducted from that tax which you
have already paid to the government.
I will deduct the tax which I have already paid to the
government.
Won't it be a double payment?
I have already paid tax once.
I am paying it again.
That is why the government said that whatever you collect,
deduct the tax from that which you have already paid.
This was the biggest feature of indirect taxes.
But in the earlier old tax structure, when we used to run a
lot of taxes, like service tax, like VAT, there used to be
a problem that some taxes were kept by the central
government and some taxes were kept by the state government.
The problem used to arise here that if you are purchasing
something or you are getting some services, on which
service tax is imposed, which used to be the tax of the
central government, you would not get the credit for that
if you were collecting some sale tax or state government
tax in the future.
You collected the tax of the state government, you did the
sales and you collected the sales tax.
But for the goods that you are making, you had to pay some
services.
You had to pay the service tax for that.
You did not get the credit for that here.
So when you do not get the credit for any tax, then it
becomes an expense for the businessman.
If I make a payment today, and I know that I will recover
this payment in the future, then it is not an expense for
me.
I will not add the cost to that.
Where will the cost come from?
I know that if I am paying 100 rupees as tax today, then
when I sell my goods in the future, the tax that will come
from the customer, out of that tax, I am also reducing this
thing.
So where will my cost come from?
The cost will come when I will not be able to reduce this
thing.
In the earlier tax structure, there were many such taxes
which you were not able to reduce.
Because of that, your cost used to increase.
If the cost increases, then the price of goods in the
country used to become expensive.
Inflation used to increase.
Modiji thought, won't it be good like this?
So he took a step towards GST.
GST will be one tax.
It will be one nation one tax.
This will benefit you all.
In one nation one tax, whatever purchases you do, whether
you take services, whether you buy goods, whether you sell
it as a service, whether you sell it as goods, whether you
sell goods or services, you will get the credit for all
those things.
The prices of things will start coming down little by
little.
The GDP of the country will also increase a lot.
We had covered these points till now in GST.
What was the main purpose of bringing GST?
Double taxation was happening.
I was taking an input of Rs.100.
I was paying a tax of Rs.100.
I am not getting its input here.
I will add it to my cost.
When it will be added to my cost, things worth Rs.1000,
I was paying a tax of Rs.100.
Here it will be worth Rs.1100.
The tax that will be imposed on the value of Rs.1100.
Now the tax is being imposed on Rs.1100.
Try to understand.
We had discussed this.
Rs.1100 means the value of a product worth Rs.1000 and tax
on Rs.100.
Now the tax that I am imposing here is above Rs.100.
I am imposing a tax above the tax.
This was wrong.
This was a big blunder.
This was a big problem.
We had removed this from GST.
Sir, these were some points that we had covered till now.
I hope you will be able to clear some points.
You will be able to remember a little.
Did you become Ghajini?
Is there a short-term memory loss of 15 minutes?
And even if there is a short-term memory loss of 15
minutes, then our lectures are less than 15 minutes.
Come on.
Let's go to the notes.
Let's do some reading.
Then let's wind up this chapter.
Let's pick up the meaning of this chapter.
Come on.
Let's start.
First of all, this chapter is discussing the same thing
that we had discussed.
Direct taxes and indirect taxes.
What is direct tax?
A tax which is imposed directly.
Which is imposed directly on the taxpayer.
And directly paid to the government.
You directly pay the government.
You cannot collect this from any other person.
If you earn money yourself, then you will have to go to the
government and deposit this tax from your own income.
Definitely.
And the example of this is income tax.
What is the second one, sir?
Indirect taxes.
What is there in indirect tax?
It is imposed at every stage.
It is levied at every stages.
The tax incidence is passed on till it finally reaches the
customer who really bears the brunt of it.
Such tax is indirect tax.
Like I had told you, they were making things worth Rs.
They imposed Rs. 100 tax.
Rs. 1100.
This was the first stage.
What is the second stage?
The person who is buying things worth Rs.
1000 added Rs.
500 to himself.
Rs. 1500.
He again imposed 10% tax on Rs. 1500.
Tax is imposed at every stage.
What is indirect tax?
You are recovering the tax from the other party.
You are not paying with your pocket.
You are recovering the tax from the other party.
It is imposed at every stage.
Assume the third stage.
He sold something for Rs. 2000.
He sold it for Rs. 1650.
And what is the person selling for Rs.
1650 doing?
He is selling it for Rs. 2000.
He is collecting 10% tax.
How much is it?
Did he collect Rs.
200 tax?
Director sir, show it to me.
Did he collect Rs.
200 tax?
Did he collect Rs.
200 tax?
Did he collect Rs.
200 tax?
And how much tax was paid here?
Rs. 150.
He will deduct it.
How much will he collect from his pocket?
Rs. 50.
Tax is imposed at every stage.
This is the feature of indirect tax.
Tax is imposed at every stage.
And finally, assume he is selling a customer for Rs. 2200.
Ultimately, who is paying all the tax?
This poor customer.
Because it is written in his name that he should die a
painful death.
Customer means a person who dies a painful death.
Ultimately, who is paying all the tax?
Customer.
These three businessmen, what benefit do they get?
They get the benefit that the tax they are collecting from
you, will be deducted from it.
The tax that they have paid at the time of purchase.
This is a feature of indirect tax.
Let's move ahead.
This is consumption tax.
It is also called consumption tax.
It is regressive because they are not based on the ability
to pay.
Income tax is...
I am going to say something bitter.
I am sorry.
Income tax is imposed according to your ability.
What did I say?
Income tax is imposed according to your ability.
Your ability to pay.
If you have the ability to earn money.
If you earn more than a particular limit, then it will be
assumed that you have some ability in the market.
And you can pay this tax.
Income tax is imposed on those people who earn more than Rs.
2.5 lakh annually.
They earn more income.
But is there any provision like this in GST?
If you go to the market today to buy a shirt worth Rs.
500, even if you don't earn any money, you earn zero
rupees, you are just living on your parents' pocket money.
If you have a shirt worth Rs.
500 and a GST of Rs.
90 on it, then you will have to make a payment of Rs.
You will have to make a payment of Rs.
90 irrespective of what is your standing in the market,
what is your status in the market.
You earn money, you don't earn money, you have an income,
you don't have an income, we don't care.
We only care about the fact that the GST is a
consumption-based tax.
Whoever consumes goods and services, whoever buys goods,
whoever gets services will have to pay GST, irrespective of
whether they earn money or not.
We don't care about the ability to pay.
It is a consumption-based tax.
All the consumers, including economically challenged, bear
the brunt of indirect taxes equally.
You have to read as much as I have read.
You can see the chart here.
It has bifurcated between direct tax and indirect tax.
Ultimately, what is the crux?
What is the progressive nature of direct tax?
High rate of tax for people having higher ability to pay.
This is income tax.
As your income increases, the rate of tax also starts
increasing at a high level.
5%, then 10%, then 20%, then 30%.
But is there anything like this in GST?
There is nothing like this in GST, sir.
There is nothing like this in GST.
Whatever type of services you get, whatever type of goods
you buy,
you have to pay the fixed rate, irrespective of whether you
earn money or not, irrespective of whether you have income
or not.
This is the difference, sir.
Burden of tax.
In direct tax, borne by the person himself, you can shift
the burden on the customer.
What are some features of indirect taxes?
It is an important source of revenue.
As I have discussed earlier, the money that the government
needs to run the country, to bring good days in the
country, to develop the country, where will that money come
from?
Either it will come from direct tax or it will come from
indirect tax.
You know the situation of our country very well.
In this country, there is a population of around 150 crores
or 140 crores.
But how many people pay income tax out of that?
Very few.
How many people file their income tax return?
You can see.
People earn a lot of money, but they don't show it.
They don't pay income tax.
Because of this, we are forced to take indirect tax, we are
forced to bring GST.
And we are forced to make such a tax, which applies to all
kinds of people, irrespective of whether they earn money or
not.
That is why the structure of indirect tax, indirect tax,
GST, can cover as many people as possible.
It is its capability.
You can go and buy anything today.
GST is applicable to everything.
Even if you are a student, you have to pay GST.
Will you give money to the shopkeeper?
It is a ten rupee item.
GST of two rupees is applied.
It costs 12 rupees.
Will you have to pay 12 rupees?
Whether you are a student or a professional.
This is its capability.
It covers as many people as possible.
And because it covers as many people as possible, the
government earns as much revenue as possible.
Come to the next point.
Commodities and services.
As I said, goods and services tax can be seen from its name.
What do goods mean to you?
Products, computer, computer screen, pen, whatever product
you buy, clothes, horse, donkey, elephant, whatever product
you buy, services, architect's service, lawyer's service,
any type of service, plumber's service, any type of
service, it is covered here.
Shifting of burden, as we have talked about earlier,
I shift the burden on the customer.
No one takes it out of their pocket.
I shift all the burden on the customer.
These are 2-3 points.
Leave it.
These are not very useful points.
Whatever I am teaching you, read only that.
Because there is a lot of content.
I am teaching you what is important in practical life.
Leave the concept of GST.
Come here.
This is the same thing.
As I told you before.
What is GST?
Value-added tax.
The value-addition you were doing, the value-added, as I
told you the example, you bought a product worth Rs.100.
And you had deposited Rs.100 tax on it.
Now what did you do?
You bought a product worth Rs.1000.
You added Rs.500 of your profit.
Rs.1500 became the value of your product.
Suppose there is a tax of 10%, then Rs.150 tax is made.
Rs.150 tax is made.
But in this Rs.150,
I will deduct Rs.100, which I have given during the
purchase.
Ultimately, Rs.100 is deducted from Rs.150.
How much is left? Rs.50 is left.
What was Rs.50?
It was 10%.
The value-added tax, which I have added.
I had added Rs.500 profit margin.
Rs.500 profit margin means 10%.
If you add 10%, it will be Rs.50.
You have added this value.
This is why you have to deposit tax from your pocket.
Let's see an example.
Look at this example.
This is a manufacturer.
I am telling you the same example.
There is nothing different.
The cost is Rs.100,000.
Costing is Rs.100,000.
This is the cost of the product which he has made.
The government has said that you are making a product.
You will get 18% GST applicable on you.
This is fine.
He does not have an input tax because he is the first
person in the chain.
He is the first person in the line.
He is the first student in the class who sits in the front
row.
In the exam hall, he is the first one to get the answer
sheet.
Do you remember that students named A used to sit in the
front row?
We remember that students named A used to sit in the front
row in the exam.
He used to get the answer sheet.
Students named S, T,
U, V, Z used to sit in the end.
He used to get an extra 5 minutes to get the answer sheet.
So, the first person is bound to be at a loss.
The first love...
I am speaking from a personal perspective.
But there is a very very small chance of getting the first
love.
The first choice is hard to get.
The first thing is a bit difficult.
In this way, the first person in the chain will not get the
input tax credit
He has not bought the goods from anywhere. He has not
bought the goods from anywhere.
He is making it himself.
Now he has sold the goods worth Rs.
Rs. 1,00,000 cost and Rs. 18,000 of GST, to this brother.
He has sold it to the distributor.
The distributor will say,
I have bought the goods worth Rs. 1,18,000. I will add a
little profit margin and sell it.
Is the distributor saying the right thing?
Is he saying, Rs.
1,18,000 is my cost?
He is saying, I have paid Rs. 1,18,000.
This is my cost, Rs. 1,18,000.
Now you tell me, is the distributor saying the right thing?
Is he saying the right thing or should he be slapped?
He is saying wrong.
Why don't you go and explain to him?
Why don't you go and tell him that you have bought the
goods worth Rs. 1,00,000.
That is your cost.
You will get the credit for Rs. 1,18,000.
You will get the credit for the Rs. 1,18,000 that you have
paid.
So how is your cost?
The distributor says, Mr. Gupta, you are absolutely right.
I will deduct the tax that I have paid for Rs. 1,18,000.
I will get its benefit.
So what is the cost?
The distributor says, Mr. Gupta, the cost is Rs. 1,00,000.
He has added Rs. 11,200 as the profit.
The cost of the goods is Rs. 11,200.
GST is 18%.
GST of Rs.
20,000 will be charged from whom?
Not from himself, but from the customer.
The biggest benefit of GST is that you don't have to pay
the tax yourself.
You can collect the tax from the customer.
If you want to see the total, Rs. 1,11,200 will be the sale
price.
Rs. 20,000 GST separately.
So he will be billing for Rs. 1,31,000.
He will come to buy goods from the customer.
He will be billing for Rs. 1,31,000.
He will say, the cost of Rs. 1,11,000 is Rs. 20,000 GST.
He has collected Rs. 20,000 GST from the customer.
The government will say, the cost of your goods is Rs.
20,000 GST.
Give me Rs. 20,000 GST.
He is smart.
He has also come with a class from Mr. Gupta.
He will say, Rs. 20,000 GST is charged.
But why should I pay for everything?
I will also deduct the Rs. 18,000.
When I bought the material for 18,000 rupees, I had 18,000
rupees in my pocket.
At that time you gave 18,000 and now you are taking 20,000.
Bro, will you buy a collection for 38,000 rupees?
According to this chain, GST is made for 20,000 rupees.
Ask me how? Try to understand once more.
I will do this, you will enjoy the foundation.
Now if I bifurcate this GST of 20,000 rupees, see how it
will happen.
This GST of 20,000 rupees is what I ultimately have to
deposit in this chain.
But out of this, 18,000 is what I have already deposited.
And the remaining 2,000, 16 rupees.
What is this affecting?
This is affecting the thing that I have added a profit of
11,200.
This is 18%.
If you don't believe, do it and see.
Total value is 20,000 which I have to deposit to the
government.
In this whole chain, till now.
Out of that, how much have I given to the government?
When I bought the material, how much have I paid?
I have done this.
I had done this here.
I had bought the material after giving GST.
I had bought the material by paying 1,18,000.
I had bought the material.
I will tell the government,
I have to pay 20,000.
They have agreed to this.
But I have already given 18,000.
Minus it.
Will you do it or not?
You will do it, right?
Modiji said, okay, why are you scaring me?
Why are you scaring me?
So out of 20,000, 18,000 will be minused.
Now this 2,000, 16 rupees, you will have to deposit from
your pocket.
What is this?
This is the tax on the value added.
The value added of 11,200,
the value added in SEAS,
18% is above that,
which you will deposit from your own pocket.
Is the point clear?
Come, next.
This input tax credit of 18,000, he has got it here.
This is called input tax credit.
We will tell him to minus it.
In desi language, ultimately,
whether it is Shyam or Ram,
whether it is Krishan or Karniya,
this is the tax credit.
Ultimately, the money he gave to the government from his
own pocket,
how much did he give?
2,000, 16 rupees.
Shall I go ahead?
Will you lower the screen a little?
The screen a little.
A little lower.
That's it, okay.
Now this distributor will go to the retailer.
Did the retailer buy the goods from him?
1,31,200.
How much was it?
Whatever it was.
The retailer had bought the goods worth 1,31,000.
The retailer will say,
my cost is 1,31,000.
Is the retailer saying this right?
Is the retailer saying right that my cost is 1,31,000?
Call the retailer, come here.
What did you say?
What is your cost?
Here, hold this.
The retailer will not get the cost of 1,31,000.
Why won't he get it?
Because the tax that the retailer has given,
the retailer has given a tax of 20,000, right?
When the retailer had bought the goods,
he had deposited a tax of 20,000 to the distributor.
He had given a tax of 20,000 to the distributor.
But the tax that was given,
that will also be minused by going to the next chain, right?
That tax will be minused in the future, right?
Then what is the problem?
The cost is 1,11,200.
The profit margin will be added,
of 24,000.
The sale price will be 1,35,000.
And on top of this, GST will be added.
What does 24,451 mean?
This is the GST that will be recovered from the customer.
The GST is 24,451.
Now the GST that I have to pay,
the GST payment of 24,451,
I have to go to the government and deposit it.
I have to go to the government and deposit a GST of 24,451.
But what will I say?
How much GST have I already given?
I have already given a GST of 20,000.
GST of 20,016.
Minus that.
Ultimately, the balance that will be left,
of 4,000 rupees, 4,400 something,
I have to deposit that from my pocket.
As soon as I get this 24,451,
what will I minus from this?
I will minus the 20,000 that I have already paid.
And the remaining 4,400 rupees,
I will have to add it from my own pocket.
Why am I giving this 4,400 rupees to myself?
Because this 4,400 rupees,
is that thing,
that tax,
that I am adding value,
I am paying on top of that.
The profit margin that I added,
added some value,
this tax is being applied on top of that.
And let's come to the final customer.
Customer is written in the name only.
Die.
So, the costing of this has become 160.
This is that person, this is you and me.
We will buy all the GST,
but will we be able to take credit for this?
We cannot take credit for this,
because we are buying this for our own consumption.
We are not buying this to sell further.
Yes, if I would have bought this to sell further,
then I would have registered in my GST.
And I could have taken its input,
I could have taken its credit.
But will I be able to take its credit here?
I am the final customer.
I am buying this for my own consumption.
In that case, I will not be able to take its credit.
All the tax will be collected from the customer.
Tax borne by the customer is this.
See, whatever is the total, whatever is the total,
all that will be given by the customer.
Did you understand this chain, friends?
This is the only chain you have to understand in GST.
Nothing else.
If you have understood this chain in GST,
then believe me,
your concepts will be clear.
Come on, next topic.
He is saying, what was the problem in the old value added
system?
The first problem is double taxation.
Tax is being imposed on tax,
but we are not getting credit.
I have read an example.
In that case, you are getting credit for purchases.
But in the old system,
you did not get credit for everything.
Because the whole taxation system was divided.
Some were with the centre, some were with the state.
Those who were with the centre,
they used to say,
if we are not getting it,
then why should we give credit to the state?
The state used to say,
if I am not getting tax,
then why should I give credit to the centre?
This fight used to go on.
Double taxation was going on.
The person who is coming after paying tax,
purchasing something after paying tax,
in the old times,
if he was not getting credit,
then what will he do?
He will add it to his cost.
Of course, he will get the money from the customer.
For example, there was a product worth Rs.
1 lakh
and GST worth Rs. 18,000.
We knew that we will get credit worth Rs. 18,000.
But if we did not get it,
then what would I do?
If we did not get it,
then I would show the cost of my product worth Rs. 1 lakh
18,000.
I would put my tax on that.
This was the point.
This would increase the cost.
He was saying that there were some transactions
in double taxation
and were taxed both as goods and services
since under the earlier regime,
distinction was often blurred.
I will tell you a very good example.
In the old system,
the government did not give any clarification that these
are goods
and these are services.
That is,
they should be taxed as goods
or they should be taxed as services.
For example,
when you used to go to a hotel or restaurant
to eat food,
5-6-7 years ago,
if you used to go to a hotel
to eat food or do home delivery,
at that time,
your bill used to include your VAT
which was your sale tax.
It was your bill tax.
And you had to pay service tax as well.
You had to pay both.
It was like
killing a customer.
He is paying a normal bill of Rs. 1,000.
On top of that,
he used to pay VAT and service tax.
Ask me why?
The reason was
that some people were arguing
that if you are going to eat food,
then what is food?
Food is a product.
The food that a person is cooking
is a product for him.
McDonald's
is a product for a person
who is selling French fries and burgers.
So, if it is a product,
then it is a good.
If it is a good,
then it should be taxed as a value added tax.
Or you can call it a sale tax.
It should be taxed as a sale tax.
You can understand the argument up to this point.
Food is a product for a restaurant.
That is why it is collecting sale tax from you.
Some people argued
that when you enter a restaurant,
there is a guard
who salutes you.
A waiter is allotted to you.
That waiter keeps your table clean.
You repeatedly call him
to take this and that.
When you enter a hotel,
the high-fi hotels,
high-fi restaurants,
there is a person playing the violin.
There is a small orchestra.
There is an aura of that place.
It is a neat and clean place.
Those services are there.
I am not giving it to you.
Is it not the service of the orchestra?
Is it not the service of the waiter who cleans your table?
Do we have good lights?
Do we have a good environment?
Sometimes there is a screen in a good hotel.
You can watch a cricket match live.
Is it not the service?
This is also right.
He is selling food.
That is his product.
This is also a sales tax.
But you cannot deny the services.
You go and take the waiter's service.
You are sitting there and giving a comfort.
That is also a service.
The orchestra is playing songs.
That is also a service.
There should be a service tax on that too.
Sir, there were two arguments.
There were many cases of this in the court.
The case reached the Supreme Court.
And after losing, both the things were applicable.
Because it seemed impossible to come to a reasonable
conclusion.
Sales tax was being added in the cost.
Service tax was also being added in the restaurant service.
There was no clear distinction between goods and services.
Now the poor customer was paying both.
What was his fault?
But now, since GST has come, he has made a clear
specification that these are goods and these are services.
What is this?
We will read this in the next chapter.
Since GST has come, many things have become clear.
Now there is only one rate of tax.
Earlier, there were two rates.
Now there is only one rate for restaurant services.
You go and see.
You will find only one rate.
This is your homework.
Because GST is such a thing that its study cannot be
completed in the class.
You will have to see this here and there in practical life.
This time, you will order food from Swiggy Zomato.
Or you will go to a restaurant and eat.
You will find that you are paying the same rate of CGST and
SGST.
There is no difference between VAT and service tax.
This used to happen earlier.
Come here.
These are the points that we have covered.
Earlier, there were many taxes in the states.
Like luxury tax, entertainment tax, which were not subsumed
in the VAT.
Hence, for single transaction, different taxes were imposed.
I remember well that we used to go to the hall to watch a
movie.
Earlier, we did not go.
We still go.
I am telling you, in the old system, when we used to buy
tickets at the counter, they used to impose VAT.
They also imposed entertainment tax.
They used to say, entertainment tax is also imposed on you.
You are here for entertainment.
We will impose tax on you.
Two taxes on a single transaction.
Useless, ultimately.
Ultimately, it is the same thing.
It is like hitting a customer.
But now, these things have become clear.
VAT on goods,
VAT on goods, was not integrated with services.
Sales tax was imposed on goods.
Service tax was imposed on services.
Payments of both were different.
Both did not get the credit from each other.
So, the costing of goods and services used to increase.
But since GST came, it has integrated both.
Goods and services tax.
Earlier, I did not get the credit.
If I do not get the credit, the costing of goods and
services will increase.
I am paying a tax.
I am not getting the credit.
I will add it to my cost.
These were the problems.
Next.
There used to be a central sales tax.
Central sales tax used to be interstate.
Interstate sales.
A person from Delhi is doing sales in Punjab.
In that case, central sales tax was imposed.
You did not get the credit.
But here, it is called IGST.
As I told you in the last lecture, if location of supplier
and place of supply were in different states, in that case,
IGST is imposed.
You do get the credit for IGST.
The costing of goods has reduced naturally.
That is why it was brought.
Let us see its benefits.
Where did it go?
Benefits of GST.
See.
Its biggest benefit was that it became a unified national
market.
As I have said many times, one nation, one tax.
You can go to Delhi, Calcutta, or Assam.
You will get GST.
But you know that if you are buying goods from somewhere,
you will get the credit for it.
You can sell it anywhere.
There is a businessman in today's rate.
He can see that if I am sitting in Delhi,
I can sit in Delhi and search that the goods I want to buy,
the goods I want to purchase, where will I get the lowest
price?
In the whole of India.
Where will I get the lowest price in the whole of India,
that I will send my man there or I will order online from
there.
Son, go and get the goods from there.
I will get the goods from there.
I know ultimately that whatever goods I am buying from any
other state,
I will get the credit for it.
But what was the problem before?
Before, I used to think that if I get the lowest price in
Assam,
I am sitting in Delhi, and I get the lowest price in Assam,
even then I used to be afraid of buying goods from Assam.
Because I knew that the tax that I will pay there,
I will not get the credit for it.
My cost will be added unnecessarily.
And when your cost is added, for example, if you buy goods
from Assam, you will not get the credit.
You will add the tax to your cost.
If you add the tax to the cost, your goods will sell a
little expensive in the market.
On the other hand, there is another customer who buys goods
from Delhi, he gets the tax credit.
When his goods reach the market, it will be a little
cheaper than your goods.
Which goods will the customer buy?
He will buy the goods of that person.
He will not buy your goods, right?
You have incurred such a big loss in your business.
You first ordered goods from Assam, you did not get the
credit, so your costing has increased.
The thing that has become a little expensive, the customer
will not buy it.
It is cheaper because he is getting the credit.
And who else is at a loss?
Assam is also at a loss.
Now no one will buy goods from Assam.
Only the people of Assam will buy goods from Assam.
But now, since GST came, it has become a unified national
market.
Buy goods from the state from which you want it.
Because we know that we will get the credit.
We do not need to add that GST to our cost.
Because of this, online sales and online purchases have
increased.
Even the smallest person is earning good money.
Ultimately, this economy used to be an employee-based
economy.
Now it is an employer-based economy.
Today, people who are 18-20 years old are also thinking to
get their business listed online.
Any sales, any product, any service, they are bringing it
online.
Because today, if I am sitting in Delhi, a person from the
south will also buy goods from me.
Because he will get the credit.
Earlier, you did not get the credit.
When you did not get the credit, you could not sell your
goods.
These are the benefits.
That is why I am advising you that if you want to do any
work in the future, do try to bring it online.
Because ultimately, your buyer who is buying goods from
you, he will research in which state this thing is sold at
the lowest price.
He will get the credit.
Ultimately, you get to know from online.
By the way, where will you get to know?
Make in India's initiative got a boost.
Even the smallest people have set up factories in their
homes.
Do you know, a person who is buying goods from you, he will
definitely get the credit.
Investments have increased.
Employment has increased.
New factories have been set up.
Small businesses are also growing.
To run those businesses, people are also needed.
Employment has increased in the country.
GDP has also grown in the country.
And I have full hope that in some time, because of GST, our
country, the golden bird will fly in the air again.
And it will fly in such a way that no one will be able to
stop it.
Ease of doing business has happened.
How is ease of doing business?
Ease of doing business is like a simple portal has been
made online.
In GST.
You go to that portal.
You file your return there.
You have to deposit tax on that portal.
It is not a big deal.
If you want to take registration, you will get it in a few
days.
Everything is done online.
Paperwork is not at all comparable in GST. Everything runs
on an online mode.
Ease of doing business has improved here.
There are only 4-5 tax rates.
There are no separate tax rates.
There are 3 tax rates, CGST, SGST, IGST.
There are 3-4 rates.
So, in today's business, the first calculation is that 2-3
tax will be charged, this is the rate at which tax will be
charged.
My goods will be charged this much,
I will buy this much and sell this much.
Calculations are happening in the mind.
Tax rates are also normal and limited.
So, there is no problem.
Earlier, there was no problem.
In tax administration, things have become a little easier.
Okay.
Compliance costs have increased.
Earlier, there were so many acts.
There was service tax, VAT, excise.
Like I have discussed earlier,
I have also discussed.
For all those acts, different return dates, different audit
dates, for that,
I used to hire a CA.
He used to charge different rates for everything.
Now, there is only one act, there is only one return.
How much work, so much work is left.
There were different dates for different acts.
All that work is now limited.
So, in a way,
I was able to save a lot of money that I used to give to my
CA for compliance.
I was able to save a lot of money.
These were some benefits that I got from GST.
But as we have discussed earlier, in GST, some things have
not been brought.
Some things, the government wants to continue according to
the old tax structure.
Those things are such that they collect more tax than GST
and give it to the government.
Things are such that it is impossible to live a normal life
without them.
Like petroleum, petroleum products, diesels, aviation, fuel
used in airplanes.
These are some things which are still because all these
things run an entire economy.
Tobacco products.
Tobacco and other things collect taxes.
All these things are still kept out of GST.
Look at this.
GST is levied on all the goods and services except
alcoholic liquor for human consumption.
Look at the wonderful name of alcohol.
You say, let's drink alcohol.
They have called it alcohol.
But look at the name.
Alcoholic liquor for human consumption.
Not for factory workers.
I am not taking liquor to put in factories.
I am not taking alcohol to put in factories or machines.
I am taking it for human consumption.
It is still kept out of GST.
Why? Because GST has limited rates.
You cannot charge GST above a particular rate.
But in this,
I am still in the old system.
No matter how much rate I want,
I will make an amendment in the Act and charge the tax rate.
Look at this.
Alcoholic liquor.
It still has the old exercise duty.
Central sale tax.
Petroleum.
Petroleum crude.
Diesel, petrol, aviation turbine fuel and natural gas.
CNG is still kept out.
Tobacco.
What is in tobacco?
It is in GST.
GST is within the purview of GST.
GST is there.
But the central government still has the power to exercise
duty and charge different taxes.
GST is there and central exercise duty is also there.
Narcotic drugs are also there.
GST is there and state exercise duty is also there.
And the real estate sector is kept out of GST purview.
There are some conditions on which GST is kept out.
We will read it in the next chapter.
Which taxes have been put in GST?
Look at this.
Earlier which taxes were put in GST?
Now GST is put in GST.
Look at the central government.
Service tax, exercise duty.
You must have heard their names.
Now GST will be put in GST.
Service tax.
Central sale tax.
All these things have been put in GST.
All these things used to be different.
Think how much work was there earlier.
Everyone's return was different.
Everyone's due date of tax deposit was different.
Everyone's compliances and assessments used to be different.
Now everything is finished.
GST has its own assessments.
GST has its own 2-3 dates of deposit of tax.
If you get different registrations in different categories,
there are not many dates.
There is a little work.
There is ease of doing business.
Compliance cost has reduced.
State tax has been put in GST.
Entertainment tax, VAT, luxury tax.
Tax on advertisements has also been put in GST.
These are some points which I wanted to show you.
Look at this.
I think we have completed this chapter.
These were some points as to why GST was introduced.
What was the objective of introducing GST?
Ultimately, you have understood the objective.
You have also come to know that the taxes which used to be
in the hands of central government have now been subsumed
in GST.
Taxes which used to be in the hands of state governments
have now been subsumed in GST.
In the next chapter, we will discuss the chapter of supply.
We have just opened the stapler pin of the envelope of the
letter.
We will discuss how GST is introduced, when it is
introduced, when it is not introduced, what are the rates,
when CGST and SGST are introduced, when IGST is introduced.
We will meet in the next lecture very soon.
Until then, do revise it.
The more you revise, the more fun it will be.
I am saying that if you make GST, the industry is open.
It is a new thing, a new topic.
It has been 4-5 years.
It is not a difficult thing.
If you learn it, you will grow a lot in your career.
You don't get such opportunities again and again.
Thank you.