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Sale within the state CGST + SGST VAT + Central Revenue will now be
Excise/Service tax shared between the
Centre and the State
Sale to another State IGST Central Sales Tax + There will only be one type
Excise/Service Tax of tax (central) now in
case of inter-state sales.
INPUT TAX CREDIT
Action Cost 10% Tax Total Action Cost 10% Actual Total
Tax Liability
Buys Raw 100 10 110
Buys 100 10 10 110
Material
Raw
@ 100
Materia
l
Manufact 150 15 165
ures @ Manufa 150 15 5 155
40 ctures
@ 40
Adds 195 19.5 214.5
Adds 185 18.5 3.5 188.5
value @
Value
30
@ 30
Total 170 44.5 214.5 Total 170 18.5 188.5
GST ADMINISTRATION & COMPLIANCE
20% 20%
18%
17%
16% 16%
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MACRO-ECONOMIC IMPACT
INFLATION
The tax rates on food and beverages, that has nearly 46% share in CPI,
is likely to reduce by 2%-3%.
The taxes continues to be nil for basic food articles like cereals, milk,
eggs, meat and fish, fruits and vegetables.
Within services, the transport services continues to be around 5%
while recreation & amusement and personal care services will be taxed
at 28% (26% earlier) .
Health and education are being kept out from the purview of GST.
GROSS DOMESTIC PRODUCT (GDP)