If its 26% its horrible how it benfits common people

Others 458 views 3 replies

Mahesh Bysani

46 Points Posted on 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

Replies (3)

CMA Poornima Madhava

CMA

13117 Points Posted on 19 October 2016

Your query is not clear especially about excise duty

CA Amrita Chattopadhyay

Audit & Assurance

13864 Points Posted on 19 October 2016

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

39039 Points Posted on 21 October 2016

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%!!!