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GST Bill Passed: What it is all about?
By: Tupaki Desk | 4 Aug 2016 6:19 AM GMT
Rajya Sabha on Wednesday passed the crucial Goods and Services Tax (GST) which is expected to bring a vast change in the Indirect Tax structure of the country. Except for Jayalalithaa led AIADMK which even staged a walkout in protest, All the parties have favored the GST during the voting. The Bill was passed after none of the 203 Members present in the Upper House opposed it during the voting process.
Dubbed as 'One Nation-One Tax', GST is nothing but a single indirect tax on goods and services for the entire Nation, starting from Manufacturer to Consumer. With the passage of GST, Taxes such as Excise Tax, Sales Tax and VAT will be combined into one single tax. List of Taxes that gonna come under GST...
Central Taxes: 1) Central Excise Duty, 2) Additional Excise Duties, 3) The Excise Duty levied under the Medicinal and Toiletries Preparation Act Service Tax, 4) Additional Customs Duty or Countervailing Duty (CVD), 5) Special Additional Duty of Customs - 4% (SAD), 6) Surcharges, 7) Cesses.
State Taxes: 1) VAT / Sales tax, 2) Entertainment tax, 3) Luxury tax, 4) Taxes on lottery, betting and gambling, 5) State Cesses and Surcharges, 6) Entry tax not in lieu of Octroi.
Under Current Taxation: For Rs 100 Raw Material, Retailer Cost is Rs 132 [(includes Rs 10 (Tax paid by Manufacturer on Raw Material), Rs 20 (Manufacturer Value Addition), Rs 2 (Tax on Manufacturer Value Addition)]. If Retailer sells the product with a margin of Rs 20, The price will go up to Rs 152. If 10 percent Sales Tax (Rs 15.2) was levied, Then final cost of the product would be 167.2. Overall, Consumer pays Rs 27.2 in Taxes.
Under GST Taxation: For Rs 100 Raw Material, Consumer will be paying just Rs 14 in Taxes [Rs 10 (Tax paid by Manufacturer on Raw Material) + Rs 2 (Tax on Manufacturer Value Addition) + Rs 2 (Tax on Retailer's Margin)].
Dubbed as 'One Nation-One Tax', GST is nothing but a single indirect tax on goods and services for the entire Nation, starting from Manufacturer to Consumer. With the passage of GST, Taxes such as Excise Tax, Sales Tax and VAT will be combined into one single tax. List of Taxes that gonna come under GST...
Central Taxes: 1) Central Excise Duty, 2) Additional Excise Duties, 3) The Excise Duty levied under the Medicinal and Toiletries Preparation Act Service Tax, 4) Additional Customs Duty or Countervailing Duty (CVD), 5) Special Additional Duty of Customs - 4% (SAD), 6) Surcharges, 7) Cesses.
State Taxes: 1) VAT / Sales tax, 2) Entertainment tax, 3) Luxury tax, 4) Taxes on lottery, betting and gambling, 5) State Cesses and Surcharges, 6) Entry tax not in lieu of Octroi.
Under Current Taxation: For Rs 100 Raw Material, Retailer Cost is Rs 132 [(includes Rs 10 (Tax paid by Manufacturer on Raw Material), Rs 20 (Manufacturer Value Addition), Rs 2 (Tax on Manufacturer Value Addition)]. If Retailer sells the product with a margin of Rs 20, The price will go up to Rs 152. If 10 percent Sales Tax (Rs 15.2) was levied, Then final cost of the product would be 167.2. Overall, Consumer pays Rs 27.2 in Taxes.
Under GST Taxation: For Rs 100 Raw Material, Consumer will be paying just Rs 14 in Taxes [Rs 10 (Tax paid by Manufacturer on Raw Material) + Rs 2 (Tax on Manufacturer Value Addition) + Rs 2 (Tax on Retailer's Margin)].
