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PROPOSED GST SCENARIO V/S PRESENT SCENARIO –

PRACTICAL APPROACH

 

FOR SUPPLY OF GOODS :-

 

ILLUSTRATIONS TO UNDERSTAND

Illustration -1

(1) For eg. M/s A (Manufacturer based in Haryana) sold/supplied goods to M/s B (Dealer Based in Haryana) for basic sale price of Rs. 100/-. M/s B further sold/supplied the goods to M/s. C (Retailer Based In Haryana). Now M/s C sold/supplied the same to Mr. D (Consumer in Haryana).

Presumptions :-

a.     At each level (i.e. B & C) Profit addition of Rs. 10/- have been done.

b.     Excise duty Rate – 12.50%

c.      Haryana VAT Rate – 12.50 %

d.     Proposed CGST Rate – 10%

e.      Proposed SGST Rate – 10%

Particulars

GST Regime Amount

(in Rs.)

Present Regime Amount

(in Rs.)

Transaction from M/s A to M/s B

 

 

 

 

 

Basic Sale of Goods from M/s A to M/s B

100.00

100.00

Add :-  Excise Duty @ 12.50 %

-

12.50

Add :-  Haryana VAT @ 12.50 % (On Rs. 112.50)

-

14.06

Add :-  CGST @ 10%

10.00

-

Add :-  SGST @ 10%

10.00

-

Total Invoice Value

120.00

126.56

 

 

 

Transaction from M/s B to M/s. C

 

 

 

 

 

Basic Sale of Goods from M/s B to M/s C (After Adding Rs.10 as profit)

110.00

122.50

Add :-  Haryana VAT @ 12.50 %

-

15.31

Add :-  CGST @ 10%

11.00

-

Add :-  SGST @ 10%

11.00

-

Total Invoice Value

132.00

137.81

 

 

 

Transaction from M/s C to Mr. D

 

 

 

 

 

Basic Sale of Goods from M/s C to Mr. D (After adding Rs. 10 as profit)

120.00

132.50

Add :-  Haryana VAT @ 12.50 %

-

16.56

Add :-  CGST @ 10%

12.00

-

Add :-  SGST @ 10%

12.00

-

Total Invoice Value

144.00

149.06

 

 

 

Comparative Analysis

 

 

 

 

 

Total revenue to Central Govt.

12.00

12.50

Total revenue to State Govt.

12.00

16.56

Total Cost to Mr. D (Consumer)

144.00

149.06

(2) For eg. M/s A (Manufacturer based in Haryana) sold/supplied goods to M/s B (Dealer Based in Haryana) for basic sale price of Rs. 100/-. M/s B further sold/supplied the goods to M/s. C (Retailer Based In Delhi). Now M/s C sold/supplied the same to Mr. D (Consumer in Delhi).

Presumptions :-

a.     At each level (i.e. B & C) Profit addition of Rs. 10/- have been done.

b.     Excise duty Rate – 12.50%

c.      Haryana VAT Rate – 12.50 % (Input tax reversal of local purchase and interstate ignored here).

d.     Delhi VAT Rate – 12.50%

e.      CST (Against C form) – 2%

f.       Proposed CGST Rate – 10%

g.     Proposed SGST Rate – 10%

h.     Proposed IGST Rate – 20%

i.       Additional Tax @ 1% applicable in Haryana (For interstate supplies fo goods).

Particulars

GST Scenario Amount (in Rs.)

Present Scenario Amount (in Rs.)

Transaction from M/s A to M/s B

 

 

 

 

 

Basic Sale of Goods from M/s A to M/s B

100.00

100.00

Add :-  Excise Duty @ 12.50 %

-

12.50

Add :-  Haryana VAT @ 12.50 % (On Rs. 112.50)

-

14.06

Add :-  CGST @ 10%

10.00

-

Add :-  SGST @ 10%

10.00

-

Total Invoice Value

120.00

126.56

 

 

 

Transaction from M/s B to M/s. C

 

 

 

 

 

Basic Sale of Goods from M/s B to M/s C (After Adding Rs.10 as profit)

110.00

122.50

Add :-  CST @ 2 %

-

2.45

Add :-  IGST @ 20%

22.00

-

Add :-  Additional Tax @ 1%

1.10

-

Total Invoice Value

133.10

124.95

 

 

 

Transaction from M/s C to Mr. D

 

 

 

 

 

Basic Sale of Goods from M/s C to Mr. D (After adding Rs. 10 as profit)

121.10

134.95

Add :-  Delhi VAT @ 12.50 %

-

16.87

Add :-  CGST @ 10%

12.11

-

Add :-  SGST @ 10%

12.11

-

Total Invoice Value

145.32

151.82

 

 

 

Comparative Analysis

 

 

 

 

 

Total revenue to Central Govt.

12.11

12.50

Total revenue to Haryana State Govt.

1.10

2.45

Total revenue to Delhi State Govt.

12.11

16.87

Total Cost to Mr. D (Consumer)

145.32

151.82

(3)  For eg. M/s A (Manufacturer based in Delhi) sold/supplied goods to M/s B (Dealer Based in Haryana) for basic sale price of Rs. 100/-. M/s B further sold/supplied the goods to M/s. C (Retailer Based In Haryana). Now M/s C sold/supplied the same to Mr. D (Consumer in Haryana).

Presumptions :-

a.     At each level (i.e. B & C) Profit addition of Rs. 10/- have been done.

b.     Excise duty Rate – 12.50%

c.      Haryana VAT Rate – 12.50 %.

d.     Delhi VAT Rate – 12.50%

e.      CST (Against C form) – 2%

f.       Proposed CGST Rate – 10%

g.     Proposed SGST Rate – 10%

h.     Proposed IGST Rate – 20%

i.       No Additional Tax applicable in Delhi.

Particulars

GST Scenario Amount (in Rs.)

Present Scenario Amount (in Rs.)

Transaction from M/s A to M/s B

 

 

 

 

 

Basic Sale of Goods from M/s A to M/s B

100.00

100.00

Add :-  Excise Duty @ 12.50 %

-

12.50

Add :-  CST @ 2 % ( On Rs. 112.50)

-

2.25

Add :-  IGST @ 20%

20.00

-

Total Invoice Value

120.00

114.75

 

 

 

Transaction from M/s B to M/s. C

 

 

 

 

 

Basic Sale of Goods from M/s B to M/s C (After Adding Rs.10 as profit)

110.00

124.75

Add :-  Haryana VAT @ 12.50 %

-

15.59

Add :-  CGST @ 10%

11.00

-

Add :-  SGST @ 10%

11.00

-

Total Invoice Value

132.00

140.34

 

 

 

Transaction from M/s C to Mr. D

 

 

 

 

 

Basic Sale of Goods from M/s C to Mr. D (After adding Rs. 10 as profit)

120.00

134.75

Add :-  Delhi VAT @ 12.50 %

-

16.84

Add :-  CGST @ 10%

12.00

-

Add :-  SGST @ 10%

12.00

-

Total Invoice Value

144.00

151.59

 

 

 

Comparative Analysis

 

 

 

 

 

Total revenue to Central Govt.

12.00

12.50

Total revenue to Haryana State Govt.

12.00

16.84

Total revenue to Delhi State Govt.

0.00

2.25

Total Cost to Mr. D (Consumer)

144.00

151.59

(4) For eg. M/s A (Manufacturer based in Delhi) sold/supplied goods to M/s B (Dealer Based in Haryana) for basic sale price of Rs. 100/-. M/s B further sold/supplied the goods to M/s. C (Retailer Based In U.P.). Now M/s C sold/supplied the same to Mr. D (Consumer in U.P.).

Presumptions :-

a.     At each level (i.e. B & C) Profit addition of Rs. 10/- have been done.

b.     Excise duty Rate – 12.50%

c.      U.P. VAT Rate – 12.50 %.

d.     CST (Against C form) – 2%

e.      Proposed CGST Rate – 10%

f.       Proposed SGST Rate – 10%

g.     Proposed IGST Rate – 20%

h.     No Additional Tax applicable in Delhi.

i.       Additional Tax @ 1% applicable in Haryana (For interstate supplies fo goods)

Particulars

GST Scenario Amount (in Rs.)

Present Scenario Amount (in Rs.)

Transaction from M/s A to M/s B

 

 

 

 

 

Basic Sale of Goods from M/s A to M/s B

100.00

100.00

Add :-  Excise Duty @ 12.50 %

-

12.50

Add :-  CST @ 2 % ( On Rs. 112.50)

-

2.25

Add :-  IGST @ 20%

20.00

-

Total Invoice Value

120.00

114.75

 

 

 

Transaction from M/s B to M/s. C

 

 

 

 

 

Basic Sale of Goods from M/s B to M/s C (After Adding Rs.10 as profit)

110.00

124.75

Add :-  CST @ 2 %

-

2.50

Add :-  IGST @ 20%

22.00

-

Add :-  Additional Tax @ 1%

1.10

-

Total Invoice Value

133.10

127.25

 

 

 

Transaction from M/s C to Mr. D

 

 

 

 

 

Basic Sale of Goods from M/s C to Mr. D (After adding Rs. 10 as profit)

121.10

137.25

Add :-  U.P. VAT @ 12.50 %

-

17.16

Add :-  CGST @ 10%

12.11

-

Add :-  SGST @ 10%

12.11

-

Total Invoice Value

145.32

154.41

 

 

 

Comparative Analysis

 

 

 

 

 

Total revenue to Central Govt.

12.11

12.50

Total revenue to Haryana State Govt.

1.10

2.50

Total revenue to Delhi State Govt.

0.00

2.25

Total revenue to U.P. State Govt.

12.11

17.16

Total Cost to Mr. D (Consumer)

145.32

154.41

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