ICICI

If its 26% its horrible how it benfits common people


Mahesh Bysani   19 October 2016

Mahesh Bysani

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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

avater

Poornima Madhava (ACMA)     19 October 2016

Poornima Madhava
ACMA 
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Your query is not clear especially about excise duty

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CA Amrita Chattopadhyay (Financial consultant)     19 October 2016

CA Amrita Chattopadhyay
Financial consultant 
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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

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Madhukar N Hiregange (Chartered Accountant)     21 October 2016

Madhukar N Hiregange
Chartered Accountant 
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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%!!!

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