DEFINITION
CGST
–
Central Goods and Service Tax means the tax levied under the Central Goods and
Services Tax Act 2016
SGST -
State Goods and Service Tax means the tax levied under the State Goods and
Services Tax Act 2016
IGST
– Integrated Goods and Service Tax means the tax levied under the Integrated
Goods and Service tax Act 2016
LEVY
- CGST and SGST will be levied on intra-state supplies
- IGST will be levied on inter-state supplies
CHARGING
SECTION
The Charging section is
section 7(1) of the CGST/SGST Act and Section 4(1) of the IGST Act.
COMPARISON
OF OLD SYSTEM WITH NEW SYSTEM WITH AN EXAMPLE
PARTICULARS
|
WITHOUT GST
|
WITH GST
|
Rs.
|
Rs.
|
|
MANUFACTURER TO
WHOLE SALER
|
||
Cost
of Production
|
5,000.00
|
5,000.00
|
Add:
Profit Margin
|
2,000.00
|
2,000.00
|
Manufacturer
Price
|
7,000.00
|
7,000.00
|
Add:
Excise Duty @ 12%
|
840.00
|
--
|
Total Value
|
7,840.00
|
7,000.00
|
Add:
VAT @ 12.5%
|
980.00
|
--
|
Add:
CGST @ 12%
|
--
|
840.00
|
Add:
SGST @ 12%
|
--
|
840.00
|
Invoice Value
|
8,820.00
|
8,680.00
|
WHOLESALER TO
RETAILER
|
||
Cost
of Goods to Whole saler
|
7,840.00
|
7,000.00
|
Add:
Profit Margin @ 10%
|
784.00
|
700.00
|
Total Value
|
8,624.00
|
7,700.00
|
Add:
VAT @ 12.5%
|
1,078.00
|
--
|
Add:
CGST @ 12%
|
--
|
924.00
|
Add:
SGST @ 12%
|
--
|
924.00
|
Invoice Value
|
9,702.00
|
9,548.00
|
RETAILER TO
CONSUMER
|
||
Cost
of Goods to retailer
|
8,624.00
|
7,700.00
|
Add:
Profit Margin @ 10%
|
862.40
|
770.00
|
Total Value
|
9,486.40
|
8,470.00
|
Add:
VAT @ 12.5%
|
1,185.80
|
--
|
Add:
CGST @ 12%
|
--
|
1.016.40
|
Add:
SGST @ 12%
|
--
|
1,016.40
|
TOTAL PRICE TO
FINAL CONSUMER
|
10,672.20
|
10,502.80
|
Cost of Saving to
Consumer
|
--
|
169.40
|
%
cost of saving
|
--
|
1.59 %
|
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