If its 26% its horrible how it benfits common people
Mahesh Bysani 19 October 2016
Sir If its 26% see this simple calculation how it burdens common people @ present its 12.5% excise duty + 14.5% vat for example for rs 100/- :12.5+14.5=27/- but our input is 14.5/- Suppose our sale price is 200+vat 14.5%=28/- is our out put 14.5/- again we r going to pay to govt Total vat+ excise duty paid for 200/- is 14.5+27=41.5/- In gst if its 26% for 100 input gst is 26/- Out put is 52/-for 200/- Again we r going to pay 26/- to govt, i.e 52/-gst total we pay for govt for rs :200/- Comparison between gst & vat: 52-41.5=10.5/-more burdens for common people for rs:200/-,now govt is looking to put cess & gst again, its horrible & it reflects inflation also In vat we pay only vat in multiple levels, but in gst we pay excise duty + vat in multiple levels
CA Amrita Chattopadhyay (Financial consultant) 19 October 2016
CA Amrita Chattopadhyay
Financial consultant430 likes 6970 points
Follow
View Profile | My Other Post
With the introduction of GST, how is excise duty and VAT considered? Excise duty and VAT is going to be abolished and GST is introduced
Madhukar N Hiregange (Chartered Accountant) 21 October 2016
Madhukar N Hiregange
Chartered Accountant1828 likes 37624 points
Follow
View Profile | My Other Post
GST leads to enhanced credit leading to reduced cost of goods. In auto industry it is expected that the giants who have costing available upto 4 th stage- main supplier - his supplier- sub sub supplier. Therefore they will insist the benefitis passed on under GST. Normal products under 18%.
The 26% is for SIN goods.
These goods already have excise duty in excess of 24% + add VAT at 14.5= add cascading of CST- 1%= total = 40. Even foir those few goods the GST introduction will reduce cost by 10%!!!
Stay updated with latest Discussion!
CAclubindia
