Gst impact on traders

GST Impact On Traders Goods and Service Tax commonly have much impact on traders and business units at a first level. The Arvind Subramaniam Committee has decided the 18% rate of GST which is divided into two segments Like CGST (Central GST) and SGST (State GST)

In GST Management, Traders used Two type Of Purchases: 1.Inter-State Purchases 2.Intra-State Purchases

1.Inter-State Purchases Description Manufacturer Freight/Transportation Excise Duty CST/IGST Applicable Service Tax on Freight (15%) Total Cost Value Addition (say 15%) Vat at 4% (1425 X 4%) CGST @ 9% SGST @ 9% Less: Input tax Credit Net Taxes Paid Total Cost to consumer Effective Rate Increase in prices (1492.70-1482) = 10.70

Pre-GST Regime 1000.00 100.00 125.00 20.00 15.00 1260.00 165.00 57.00

(125+20+15+57=217.00) 1,482.00 14.65% -

Post-GST Regime 1000.00 100.00 198.00 1298.00 165.00

113.85 113.85 198.00 (198+227.70-198) = 227.70 1,492.70 18.00% 0.73%

1.Intra-State Purchases Description Manufacturer Freight/Transportation Excise Duty GST Applicable Service Tax on Freight (15%) Total Cost Value Addition (say 15%) Vat at 4% (1405 X 4%) CGST @ 9% SGST @ 9% Less: Input tax Credit Net Taxes Paid Total Cost to consumer Effective Rate

Increase in prices (1492.70-1461.20) = 31.50

Pre-GST Regime 1000.00 100.00 125.00

Post-GST Regime 1000.00 100.00 198.00

15.00 1240.00 165.00 56.20

1298.00 165.00

(125+15+56.20=196.20) 1,461.20 5.24%

-

113.85 113.85 198.00 (198+227.70-198) = 227.70 1,492.70 18.00%

3.00%