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Telugu dailies and news channels are simply reporting on the basis of Mr. Naqvi's response in Rajya Sabha yesterday. They have done no further background research. At 7pm, BJP Minister from TN has mentioned to the press that it is difficult to postp…
Certainly not possible to do a Chennai-only postponement. All-India postponement is also very difficult at the 11th hour, they would have to ensure that all the Centres and personnel are available on the postponed dates, need to handle the issue of …
@Panditji You are right, since GST reduces cascading effect of taxes on goods and creates a national market for procurement of raw materials, our exports will become more competitive.
GST only taxes domestic consumption, so goods/services meant for…
@Panditji GST is a consumption tax. You tax whatever is being consumed in your jurisdiction, not what is being produced in your jurisdiction. This makes it inherently a destination-based tax. If a person in Bihar is paying Rs 1000 buying a cell phon…
Tax vs duty vs levy: there is virtually no difference. All are taxes, and can only be levied by law as per Article 265. It is only a matter of convention that we use the term "duty" to refer to some additional levies which are on top of the main dut…
@punditjee Revenue Neutral Rate is basically the Rate of CGST+SGST at which Centre+States would earn approximately as much as they do today. Revenue Neutral => Revenue does not change.
This rate is very hard to estimate accurately! Revenue will …
BTW the above example assumes A, B and C are in the same state. If B and C are in different states, it gets more complicated. B would have to pay CST (Central Sales Tax) of say 4%, C cannot claim that as tax credit! So he will again have to pay VAT …
@kgips Yes, but what that means is that only the VAT component paid by other suppliers along the value chain can be claimed as credit to pay your own VAT. We still impose VAT on Manuf Cost + Central Excise duty, making it a tax on tax!
This could b…
There will be two major effects on consumers:
1. Goods will be cheaper
2. Services will be more expensive
Detailed explanation:
Here is why goods will be cheaper:
Currently, Central Government has the power to tax "manufacture" of goods and state…
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