Page 33 - Plastics News June 2017

FEATURES

How will GST work? GST

Mechanism – Levy and Credit

State A State B

Inter-state purchase - 50
IGST @ 18% = 9

Input Dealer 1 Inter-state sale - 125 Dealer 2 Local sale - 140
credits (D1) IGST 22.5 (D2) CGST = 12.6
SGST = 12.6
Local purchase - 50
CGST @ 9% = 4.5 Customer
SGST@ 9% = 4.5 Order of utilization

Output IGST 22.5 CGST SGST
Less: Output GST 12.6 12.6
Input IGST 9.0 Less: Input IGST 12.6
Input CGST 4.5 Input IGST 9.9
Input SGST 4.5 Net SGST payable by D2 2.7
Net IGST payable by 4.5
Order of utilization
D1 • Order of Utilization:
- IGST = IGST, CGST, SGST No cross credit between
- SGST = SGST, IGST CGST & SGST
- CGST = CGST, IGST
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* Calculations are made assuming GST of 18% for Goods and Services. Assuming State and Centre share equally
What is the change in taxes?

Current regime GST regime
Input and
Imports of Goods Import of Goods Output
BCD, CVD, Cess, SAD (29.44%) BCD, IGST (29.8%) + Cess
Tax Structure
Import of Services Import of Services
Service Tax (15%) IGST (18%)
Assuming
Local Purchase / Sale Local Purchase / Sale standard GST
Excise Duty (12.5%), VAT (5%) CGST (9%), SGST (9%) rate of 18 per
cent
Interstate Purchase / Sale Interstate Purchase Sale
Excise Duty (12.5%), CST (2%) IGST (18%)
Services – Local / Interstate Services – Local / Interstate
Service Tax (15%) CGST (9%), SGST (9%) / IGST (18%)
Inter-state stock transfer Inter-state stock transfer
Excise Duty (12.5%) in case IGST (18%)
sent from plant, No VAT / CST
Ineligible credits Ineligible credit
BCD, CST, VAT retention, Cesses, ineligible BCD, Unmatched transactions,
credit of Excise Duty, VAT, Service Tax ineligible credits under GST
Exports Exports
Zero rated Zero rated 6

33 June 2017 | Plastics News