Professional Documents
Culture Documents
Discussions
- G
Tuesday,
15
September
2015 9:22
pm
WHAT
IS
GST? While
the
VAT,
which
replaced
sales
tax
and
has
already
been
adopted
by
all
the
states,
was
imposed
only
on
goods;
the
GST
will
be
like
a
VAT
on
goods
and
services
both.
There
is
10%
tax
-->
So,
I
paid
Rs.10
tax
for
milk
+
Rs.10
tax
for
sugar
=
a
total
of
Rs.20
GST
to
the
wholesaler
Now,
using
the
milk
and
sugar
I
bought,
say
I
make
ice
cream.
I
set
its
SP
=
Rs.250
with
a
view
of
a
profit
margin
of
Rs.50
What
about
the
Rs.20
tax
I
paid
when
buying
milk
+
sugar?
=
We'll
actually
recover
them
later
below.
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There
is
10%
tax
in
my
state
-->
So,
I
paid
Rs.10
tax
for
milk
+
Rs.10
tax
for
sugar
=
a
total
of
Rs.20
TAX
to
the
wholesaler.
Now,
using
the
milk
and
sugar
I
bought,
say
I
make
ice
cream.
I
set
its
SP
=
Rs.270
with
a
view
of
a
profit
margin
of
Rs.50
And
given
the
current
nature
of
politics,
that
is
easier
said
than
done.
SIN
TAX
FOR
Sin
tax
=
globally
prevalent
practice
under
which
"sinful"
ALCOHOL
AND
products
like
tobacco
and
alcohol
which
are
considered
as
TOBACCO
"bad"
for
society
attract
higher
rates
of
tax
INDUSTRIES
IN
GST
REGIME The
main
aim
of
this
sin
tax
is
to
discourage
people
from
using
these
products/services.
INDUSTRIES
IN
GST
REGIME The
main
aim
of
this
sin
tax
is
to
discourage
people
from
using
these
products/services.