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what is GST:- 

 

before GST, structure of tax as shown in below image:

 

2r2of2r.jpg

Consumer has to pay 242 rupees for the final finished product based on VAT.

 

after GST, tax will be low on final product as shown in below image:

 

28c2e55.jpg

see above with GST bill:- whole saler will say that manufacturer paid 10 rupees tax already so i will pay remaining 5 rupees. Again retailer will say that both wholesaler & manufacturer paid already 15 rupees tax so i will pay remaining 7 rupees tax only. So this is how GST is levied on based on value addition only but not on whole price. So the final product will be cheaper for consumer with GST bill reform. the difference is 15 rupees cheaper for consumer for the same product.

 

 

 

Pros -

 

1. if a person or business unit does a service on a machinery item in chittoore, generally he can bill in chennai and shows invoice to chittoor business as he already paid (TDS) cess 4% (current rate) paid to TN govt. So this Chittoor tax unit will shut his asss hoole and keeps silent.

Now with GST bill, he will pay GST tax to central govt. So central govt. will revert this 4% tax to AP govt since service is done in chittoor, AP.

 

 - Gain to AP & Loss to TN.

(point #  this is one of the reason why TN is opposing GST).  :dream:

 

2. generally if a product is manufactured, all types of taxes applicable collected in all stages of manufacturing that product. let say that product is manufactured in AP. generally business buys raw material from either local vendors and manufactures the final product. Also manufacture has head office in mumbai, MH. Now finished goods is sold in MH to whole saler or directly to consumer so this transaction becomes interstate, as the manufacturer bills the wholesaler in mumbai and collects local mumbai tax. before GST, entire tax amount goes to MH only as the business might have incentive from AP govt for setting local manufacturing unit to create local jobs.

 

     with GST,  all the taxes relevent in AP are substracted on manufacturer cost and only remaining tax on value added to manufacturer cost is paid by consumer within this collection of GST, center distributes that tax on manufacturer cost to AP & remaining tax on value added by wholesaler to MH. This is the case where manufacture bills in mumbai since his headquarter is in mumbai.

 

 - Gain to AP, consumer & Loss to MH.

(point #  This is one of the reason why MH is loosing the revenue and wants center to compensate).

 

3. GST makes the tax as consumer based taxation. Before it was origin based taxation system.

 

if a product is manufactured in TN and head quarter of manufacture is located in TN, the product is billed with tax in TN to wholesaler by manufacturer. This entire tax goes to TN govt even though wholesaler is in MH and final consumer is in MH. Now with GST, tax goes to MH since the consumer is located in MH.

 

(point # why TN is opposing this GST).  :dream:

 

 

4. All e-commerce business now comes under GST. before there was not taxed by many states. now with GST all e-commerce business needs to collect GST including amazon, snapdeal, flipcart etc.  :dream:

Cons - 

 

1. GST is not applicable to crude oil, diesel, petrol, natural gas, ATF (aviation turbine fuel) and alcohol consumed by humans. These products are only directed taxes by State Govt.

 

2. States can still add additional tax on raw material manufactured by business to counter the loss faced by states due to GST.

 

3. States can sill add freight and logistics taxes on products.

 

4. GST may add more taxes to house construction & Real estate per economists. 

 

5. service industry where current rate is 15% and if GST rate is more than 15%.

 

6. Pharmacy sector - Rates of pharmaceuticals will increase.

 

7. Inflation will rise as there will be rates increse in service sector.

 

Below Example explains how consumer gets benifit with GST:

 

This tells you are paying 58 Rs tax now. With GST in force, you will pay only 16 Rs.

AGYYgib.jpg

 

 

Update Jun 27, 2017:  below link you can find full list of items covered under 3 different tax rates in GST. 

 

http://www.moneycontrol.com/news/business/economy/full-list-of-gst-rates-for-98-categories-of-goods-2283599.html

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what is GST:-    before GST, structure of tax as shown in below image:   Consumer has to pay 242 rupees for the final finished product based on VAT.   after GST, tax will be low on final produ

Correct anything if i typed wrong.    Below is the state wise tax collection in 2014. notice that figure for AP as united with TG.       Below is full detail on GST that is targeted to be eff

Vichitram entante - Modi opposed GST bill tried to introduced by UPA when he was CM. Now he is the one introducing it.  :dream:  :dream:

 

The present form of GST is over 80% different from that of UPA. Then, states didn't have flexibility and totally dependant on central govt. typical congress way of working through high command... Now GST panel has 2/3rd vote strength of states and 1/3rd of central govt, also states are free to add their taxes from their end on GST, that's why cap is at 18%. petrol, liquor, other items vital to state taxes are exempt from GST, which means states enjoy autonomy from their end. Also, the present bill will pay for the losses of states for 5 years, which was not in UPA bill..

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The present form of GST is over 80% different from that of UPA. Then, states didn't have flexibility and totally dependant on central govt. typical congress way of working through high command... Now GST panel has 2/3rd vote strength of states and 1/3rd of central govt, also states are free to add their taxes from their end on GST, that's why cap is at 18%. petrol, liquor, other items vital to state taxes are exempt from GST, which means states enjoy autonomy from their end. Also, the present bill will pay for the losses of states for 5 years, which was not in UPA bill..

 

true that there were no incentives to states for loss of revenue and powers to states via GST council in UPA bill. now both are included only after TN and MH demanded it. Otherwise modi would not have included them.  :dream:

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true that there were no incentives to states for loss of revenue and powers to states via GST council in UPA bill. now both are included only after TN and MH demanded it. Otherwise modi would not have included them.  :dream:

 

That was actually advocated by Modi when he was Guj CM. even the recent developments and additional clauses inspite of 100% FDI in certain sectors were also advocated by him as Guj CM. He always yearned for better center-state cooperation and talked about strengthening federal structure.  You say as if you know everything modi thinks and does. that's rubbish.

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akhil uncle aputhavaa ne BJP and Modi Bhajana .. ma state ki , ma ap pejanikaniki paisa proyojanam ledhu.. motham North states ne love chestahru central govt lo.. South indians and east indians mosapoyaru , chi koduthunaru , chethakarinchukuntunaru north vaalu .. e biased feeling ilane choopisthe eppudoo pitch penta penta avudii :youth:

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That was actually advocated by Modi when he was Guj CM. even the recent developments and additional clauses inspite of 100% FDI in certain sectors were also advocated by him as Guj CM. He always yearned for better center-state cooperation and talked about strengthening federal structure.  You say as if you know everything modi thinks and does. that's rubbish.

 

Mee Modi gaari bhajana aapithe better brother. originally bill had words of clause as "compensation of loss of tax revenue for upto 5 years". with the TN, MH and congress demand the words changed to "compensation of loss of tax revenue for 5 years".

 

read in this link.

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Mee Modi gaari bhajana aapithe better brother. originally bill had words of clause as "compensation of loss of tax revenue for upto 5 years". with the TN, MH and congress demand the words changed to "compensation of loss of tax revenue for 5 years".

 

read in this link.

 

 

nenu evari bhajana cheyalo kuda meerey cheppesthey ela brother.. :( ..

 

MH, TN adigayi kada ani maaristhey inka valla okkalla kosame bill pass chesinatlu kadhu kadha brother..

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nenu evari bhajana cheyalo kuda meerey cheppesthey ela brother.. :( ..

 

MH, TN adigayi kada ani maaristhey inka valla okkalla kosame bill pass chesinatlu kadhu kadha brother..

 

 

abunu nuvvu BJP agent vi , modi bhakth vi , ap ki anti vi .. ani pidel cheppamanadu uncle :youth:

 

bokkalo modi thokkalo bjp 

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abunu nuvvu BJP agent vi , modi bhakth vi , ap ki anti vi .. ani pidel cheppamanadu uncle :youth:

 

bokkalo modi thokkalo bjp 

 

pidel ki raul gandhi meedha inka moju poinatlu ledhu ga.. anduke alaanti abaandaalu estunnadu na meedha... :close: :close:

 

daniki malli nee flute endhi feefee.. :brakelamp: :brakelamp: :brakelamp:

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akhil uncle aputhavaa ne BJP and Modi Bhajana .. ma state ki , ma ap pejanikaniki paisa proyojanam ledhu.. motham North states ne love chestahru central govt lo.. South indians and east indians mosapoyaru , chi koduthunaru , chethakarinchukuntunaru north vaalu .. e biased feeling ilane choopisthe eppudoo pitch penta penta avudii :youth:

 

This is true. the main motivation for GST bill is to profit North states. they want to distribute tax revenue based on population so that bihar, uttar pradesh etc. gets more money via tax distribution. see below images of population Vs Per Capita tax collection in individual states.

 

 

28tdpww.jpg

 

23uu72b.jpg

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nenu evari bhajana cheyalo kuda meerey cheppesthey ela brother.. :( ..

 

MH, TN adigayi kada ani maaristhey inka valla okkalla kosame bill pass chesinatlu kadhu kadha brother..

 

vallu main ga oppose sesaru. congress vonthu paadindi. final ga jaitley XXXX ayyadu....now the revenue loss is guaranteed for 5 years via this clause and if center does not pay in time, states can go to supreme court. 

 

lekunte Modi gaaru edo malla oka reason cheppi adi kuda ega10ge vaadu...

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