Professional Documents
Culture Documents
on removal of
goods from the
factory
Retailer Customer
(Karnataka) (Karnataka)
Manufacturer Distributor
(Karnataka) (Maharashtra)
Sale value = INR 100
CST = INR 2 or VAT
rate
Dispatch of FG INR
200
Excise Duty INR 25
Dispatch of FG INR
200
VAT INR 29
CST (IGST) on
supply of goods
payable in State B
(consumption state)
where the goods
are consumed
Excise
Duty
Service VAT
CGST
Tax + Entry Tax = SGST
BCD* Luxury Tax
IGST
CVD Ent. Tax
SAD
CST
Supply of FG INR
200
IGST INR
40
Zero Rate
0% Zero Rate
Special Rate 0%
1% Base Rate
Base Rate 12% Higher
12% Higher Rate 20%
Rate 20%
The GST rate are still under discussion. Decision
pending on the actual GST rates and number of GST
rates
Export of Goods or
Seller Services Buyer
Value of Supply INR
100
GST INR 0
Export would be
zero rated under
GST, but the seller
would be eligible for
input tax credit /
refund of the input
GSTs
To the Consumers
Tax base time services
To the Business
Increase in Reduction in Improved
Revenue litigation services
levels
Streamlining of Efficient
tax structuring of Access to
administration operations more goods
and services
Self-Assessment
Minimum of 4 different
taxes under GST
Transactional
Probability of high Provisions
rate of GST
IT Infrastructure
Complexity of taxing
inter-state transactions GST Administration
Reduced corruption