GST in India

Goods and Services Act  will unleash a tax regime that will make India One nation, one tax, one market.

But everyday, I read in newspapers, many business associations, many traders associations are protesting on one issue or another relating to this new tax regime, GST is going to be implemented in India on July 1, 2017.

Most of the mental panic translated  into protests and  complaints by business community relates teso impact of GST on business. To clear this myth and mental mist, I am explaining the impact of GST on business. ju

Generally, there are 3 steps that a product takes to reach the final consumers. Ultimate burden of tax is to be born by the consumers - industrial or domestic.

Now the impact under simple Sales Tax Act and Goods and Services Tax:

A product is manufactured in a factory and its manufacturing cost is Rs. 100/- and profit added at every level is 10%

                                             Under Sales Tax  (Tax Rate 15%)                   Under GST (Tax Rate 28%)

1         Cost Ex-Factory              100                                                                 100

2         + Profit    10%                   10                                                                   10

2        + Tax @15% on 110           17                                                                   31 (28%)   A

3        Ex-Factory Price               127                                                                  141

4.        + Profit 10%                      13                                                                     14
4.       +Tax @15%  on 140           21                                                                    43 (28%) B
5.       +Profit 10%   on Rs. 110   11                                                                     11                                                          

6        Total                                 172                                                                   209

7        Less: Input credit                 0                                                                      28         A

8       Ex Distributor Price          172                                                                    181

9.     + Profit @10% on 123         12                                                                     12

8       + Tax  @    15%   on 184    28                                                                     54    (28%) C


10       Less: Input Credit                 0                                                                    43      B

11       Ex Wholesaler Price        212                                                                  205
       
12      + Profit @10%on 135         14                                                                    14

13    + Tax @ 15% on 226            34                                                                    61  (28%) D      

14    Less: Input Credit                    0                                                                    54           C

15    Price for Retailer                 260                                                                   226

16    + Profit@10%  on 226          22                                                                     17      

14    +Tax @15%    on 226           34                                                                     68@28%

15    Less: Input Credit                   0                                                                     61   D

16  MRP                                       316                                                                   250

Note: This table and calculations may not mathematically correct. But the message is that under GST, the merchandise will be cheaper.

In earlier system, there was also input credit system but it was too cumbersome and tax evasion was enormous. But now, governance through degitalization will make the tax evasion very very difficult and punishable under law.

Conclusion: Clear your mental confusion. In earlier system, the product that had manufacturing cost of Rs. 100 with 15% sales tax rate reached with MRP of Rs. 316 with the end consumer. In the new GST regime, thought the rate is about doubled i.e. 28%   will cost the end consumer Rs. 250. So, why are the business associations protesting the GST regime is merely lack of proper knowledge.

Moreover, in this example, no excise duty, no custom duty, no service tax has been levied which are now completely merged into GST.

Note: Any newspaper, media or other source that wishes to spread this vital information may use this article "FREE of COST". No copyright claim will be lodged. This is for the service and help of the people in India and around in the world. World gave me many things. I am thankful.    

जी एस टी को लेकर बहुत भ्रांतियाँ , डर और शक हैं।  क्या होगा जी एस टी, कैसा होगा जी एस टी ? तो एक ही लाइन में समझ लें की   जी एस टी से आम आदमी का बहुत भला होने बाला है।  जो बस्तु पहले 15 % टैक्स लगकर फैक्ट्री से 100 रूपए में बनती थी बह आप के हाथ में 210 रूपए या इस से अधिक में आप के हाथ में पहुंचती थी।  यह मूल्य बिना सेंट्रल एक्साइज , बिना कस्टम ड्यूटी और कई टैक्स के है।

अब  जी एस टी लगने के बाद यही 100 रूपए की चीज़ 124 रूपए मेँ मिलेगी यानि लगभग 100 रूपए की खरीद पर 40 रूपए का लाभ पहले के मुकाबले।  इंस्पैक्टर राज़ ख़तम होगा।  पक्के धन की बढ़ोतरी होगी।  जिससे आम जनता अधिक टैक्स देगी।  अधिक टैक्स का मतलब अधिक देश और देश बासियों कि अधिक  प्रगति होगी।

आओ खुले मन से  जी एस टी का स्वागत करें।

Tax Deducted at Source

T.D.S 

ATTENTION: 

Non-Government Tax Deductors 

Make sure you comply with these

5 steps

Step 1: DEDUCT: Deduct the TDS while making payment as required by law.

Step 2: DEPOSIT: Deposit the TDS deducted every month by 7^th of next month.

Step 3: FILE : Last date to file your TDS statement for the quarter ended 31^st December, 2012 was 15^th January, 2012. Last date for filing return is 15^th day following the end of the quarter and another return is to be filed when the year closes.

STEP 4:  DOWNLOAD: It is mandatory to download the TDS certificate in Form 16A containing six character TDS certificate number from www.tdscpc.gov.in .

STEP 5: ISSUE : Issue the TDS certificate in Form 16A on income other than salary for quarter ended 31^st December, 2012 by 30^th January, 2013 (30^th April, 30^th July, 30^th Oct as the case may be.)

ALERT 1: QUOTE correct PAN of the deductees in your TDS statement so that the deductees may get their due tax credit.

ALERT 2: From 01.07.2012, delay in filing of TDS statements shall invite levy of fee of Rs. 200/- for each day of default not exceeding amount of tax deductible.

ALERT 3: NON-QUOTING of PAN  or TAN in TDS statements may lead to levy of penalty.

YOUR TAXES ………………….BUILD THE NATION

PAY  TAX ……………KARO RELAX

WORK

Nobody should avoid work.

“Through work alone can one remove the bondage of work, not by avoiding work.

Total detachment comes later on.

One should not be without work even for a moment.

Censure is the tax man pays to the public for being eminent."