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a rePort oN gSt WorkShoP
B nAGA LAxmI
ASST PROF IN COMMERCE
The Dept of Commerce organized one day workshop on “ Perspective of GST in Indian
Tax System” on 16 th March 2019. The workshop was organized in collaboration with the DRC
Mahabubnagar. The main aim for the workshop was to enrich the knowledge about GST and its
various aspects to the commerce faculty of various colleges in Mahabubnagar and the Commerce
students of the college. Prof K Girija Mangatayaru Registrar Palamuru University was the Chief
Guest of the workshop. Dr M Vijaya Kumar principal(FAC) MVS College Mahabubnagar was
guest of honour. Dr Govind Bhushan principal DR BRR GDC Jadcherla, T Shekar Reddy
Principal SLDC Narayanpet were special invities . Dr Bibi Zainab principal of the College
presided over the inaugural function. All the guests spoke about the various aspects of GST and
expressed the of people awareness regarding this new tax system. In technical sessions Charted
Accountants from Kurnool Sri KV Krishnaiah, Harish, Rajendra Prasad and K Rudrastapathi Tax
Consultant from IT Department, highlighted the various aspects of GST.
Goods and Services Tax (GST) is an indirect tax. The GST Bill was discussed in length
in Parliament in order to end the prevailing taxation system of imposing various indirect taxes
and implement a new system in which most of these taxes will be covered under one umbrella.
On 8th September, 2016, President Pranab Mukherjee gave assent to this Bill, making it an Act.
In order to understand the features and objectives of GST Act, first we need to take a quick look
on the previous taxation system. Previously taxes were charged on every stage viz. excise on
manufacture, VAT/CST on sales, entry tax on entry of goods in local area etc. These taxes get
accumulated with the original price as the input credit for the tax already paid is not available to
the consumers. This cascading effect of tax i.e. tax on tax results in hiking the prices of goods or
services. These taxes were imposed by the Centre and state differently according to the Lists in
The Constitution of India. Now the new concept of GST is that the GST would be a single tax
system which would be levied on ‘supply’ of goods and services and this tax will be jointly
imposed by the Centre and the state with the recommendation of a Federal Institution created
which is the GST Council.
GST: Explained in Numbers: For example, suppose a person wants to buy a shirt. Now in
order to determine the price of the shirt, we need to start from the very first step i.e. purchase of
raw material.
NON-GST PROCEDURE: Raw material was purchased for say Rs. 100 (inclusive of Rs. 10 as
tax). A value of Rs. 50 is added to it by the manufacturer.This good is sold to wholesaler at Rs.
165 (inclusive of 10% tax). Now the wholesaler adds his margin of Rs. 20 to it and sells it to the
retailer at Rs. 203.5 (inclusive of 10% tax).Retailer then adds his margin of Rs. 20 more and sells
this good to the consumer at Rs. 245.85 (inclusive of 10% tax).Hence the good costs Rs. 245.85
to the consumer which includes Rs. 65.85 paid as tax.