GST Impact On Traders

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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)

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In GST Management, Traders used Two type Of
Purchases

1. Inter-State Purchases
2. Intra-State Purchases

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1.Inter-State Purchases
Description Pre-GST Regime Post-GST Regime Manufacturer 1000.00 1000.00 Freight/Transportation 100.00 100.00 Excise Duty 125.00 CST/IGST Applicable 20.00 198.00 Service Tax on Freight (15) 15.00 Total Cost 1260.00 1298.00 Value Addition (say 15) 165.00 165.00 Vat at 4 57.00 (1425 X 4) CGST _at_ 9 113.85 SGST _at_ 9 113.85 Less Input tax Credit 198.00 Net Taxes Paid (125201557217.00) (198227.70-198) 227.70 Total Cost to consumer 1,482.00 1,492.70 Effective Rate 14.65 18.00 Increase in prices (1492.70-1482) 10.70 - 0.73
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1.Intra-State Purchases
Description Pre-GST Regime Post-GST Regime Manufacturer 1000.00 1000.00 Freight/Transportation 100.00 100.00 Excise Duty 125.00 GST Applicable 198.00 Service Tax on Freight (15) 15.00 Total Cost 1240.00 1298.00 Value Addition (say 15) 165.00 165.00 Vat at 4 56.20 (1405 X 4) CGST _at_ 9 113.85 SGST _at_ 9 113.85 Less Input tax Credit 198.00 Net Taxes Paid (1251556.20196.20) (198227.70-198) 227.70 Total Cost to consumer 1,461.20 1,492.70 Effective Rate 5.24 18.00 Increase in prices (1492.70-1461.20) 31.50 - 3.00
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