gst rates

The final goods produced by the manufacturer of wooden furniture will be taxed at the rate of 12% under GST instead of the current average VAT rate of 12.5%. Plywood is used mainly in the manufacture of most of the wooden furniture articles. There has been a significant increase in the rate of plywood from the current average VAT rate of 5-6% to 28% under GST. Due to the increase in the tax rate on plywood, there are significant chances of increase in the cost of wooden furniture. Although the manufacturer can claim the ITC on the tax paid for purchasing plywood in order to make the furniture

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