How amazing it is now no more double taxation, all man treated equally at equal rates despite belonging to different states in our India. Goods and Service Tax is a one nation-one tax that came into effect on 1st July 2017. It is a tax that is levied on the supply of goods and services in India. An indirect tax that subsumed all other indirect taxes like Excise Duty, Service Tax, Counter Vailing Duty (CVD), Special Additional Duty of Customs (SAD) etc. It is a destination based tax that is levied on every value addition.
Taxation of Education Sector under GST Regime
There are 3 taxes applicable under this system:
- CGST (Central Goods and Service Tax) – Collected by the Central Government on an intra-state sale,
- SGST (State Goods and Service Tax)- Collected by the State Government on an intra-state sale and
- IGST (Integrated Goods and Service Tax)- Collected by the Central Government for inter-state sale.
This simplification of indirect taxation has made the compliance easier and transparent. Cascading tax effect has been removed to a great extent. The procedure of filing tax returns is electronic, so it is also a positive step towards digitization in India. Apart from this, efficiency has been improved in logistics business and more regularity can be observed in the unorganized sector.
For TIN-Facilitation and PAN Card Centre Franchise Managed by NSDL. An opportunity for young practitioners.Please contact 8007931531, 8698009641 and 9860531313
FAQs on Eligibility of Input Tax Credit on Food and Beverages
Since, this tax is destination based, the final burden of the tax actually comes on the end consumer i.e. the common man. He is the one who bears all the burden of GST as he is in the end of the supply chain. He is the final consumer for whom the production or manufacturing is being done in the economy. So at every stage when the GST is being levied, ultimately the burden is put on the end consumer. Therefore it becomes important for us to know how much burden the common man is bearing of GST on an average and that too on a daily basis. In other words, how much pocket of the common man is burning when it comes to the indirect tax being paid by him to the government in this period of inflation where general prices of the commodities is going up.
New GST Payment and Input Tax Credit (ITC) calculator
In order to find out the average per day GST, we take some of the basic commodities that are being used by a common man on a daily basis. For this purpose we take the following goods and services and would arrive at an average GST:-
Toothpaste, Toothbrush, Soap, Shampoo, Hair oil, Milk, Tea or coffee, Bread, Cornflakes, Biscuits, Tomato Ketchup, Eggs, Fruits, Vegetables, Juice, Flour, Pulses, Cooking Oil, Rice, travelling: cab or auto, mobile recharge including data charges.
Check the GST calendar
The following table gives an insight into the GST rates of the above basic goods and services, their selling price which the common man pays and the GST portion that the common man pays on an average daily basis.
| Product | Quantity required in a month (corres- ponding to the quantity given in bracket with the product) | GST Rate | Average Selling Price Of 1 unit corres- ponding to the quantity given in bracket with the product (Rs.) | Total Price paid by the buyer Qty. required X Average selling price | GST portion paid in a month (Rs.) | GST per day based on the usage by the end consumer (Rs.) | |
(A) |
(B) |
(C) |
(D) |
(E)=(B)X (D) |
(F)={(E)*(C)} /{1+(C)} |
(G) =(F)/30 |
|
| Toothpaste(80gm for 1month) | 2 | 18% | 60 | 120 | 18 | 0.6 | |
| Toothbrush(1 brush) | 1 | 18% | 40 | 40 | 6 | 0.2 | |
| Soap(100gm for 1 month) | 2 | 18% | 50 | 100 | 16 | 0.53 | |
| Shampoo(400ml for 1 month) | 1 | 18% | 200 | 200 | 30 | 1.47 | |
| Hair oil(90ml for 1 month) | 1 | 18% | 60 | 60 | 9 | 0.3 | |
| Milk (1 litre for 1 day) | 30 | 0% | 30 | 900 | 0 | 0 | |
| Tea or coffee(100gm for 1 month) | 1 | 5% | 70 | 70 | 4 | 0.14 | |
| Bread(1 packet for 1 day) | 20 | 0% | 25 | 500 | 0 | 0 | |
| Cornflakes(500gm for 1 month) | 1 | 18% | 200 | 200 | 31 | 1.03 | |
| Biscuits(1 packet for 1 day) | 20 | 18% | 25 | 500 | 76 | 2.53 | |
| Tomato Ketchup(500g for 1 month) | 1 | 12% | 70 | 70 | 8 | 0.26 | |
| Eggs (1 dozen for 1 week) | 4 | 0% | 50 | 200 | 0 | 0 | |
| Fruits (1 kg for 1 week) | 4 | 0% | 50 | 200 | 0 | 0 | |
| Vegetables(1 kg for 1 week) | 4 | 0% | 50 | 200 | 0 | 0 | |
| Juice(1 tetra pack for 1 day) | 30 | 12% | 30 | 900 | 96 | 3.2 | |
| Flour(5kg for 1 month) | 1 | 0% | 170 | 170 | 0 | 0 | |
| Pulses(2 kg for 2 weeks) | 4 | 0% | 200 | 800 | 0 | 0 | |
| Cooking Oil(2 litres for 1 month) | 2 | 18% | 300 | 600 | 92 | 3.06 | |
| Rice(1 kg for 2 week) | 2 | 0% | 200 | 400 | 0 | 0 | |
| travelling: cab or auto(for 1 ride) | 50
(25 while going to and 25 while coming back ) |
5% | 60 | 3000 | 143 | 4.76 | |
| mobile recharge including data charges ( for 1 months) | 1 | 18% | 300 | 300 | 46 | 1.53 | |
| Total | 9530 | 575 | 19.61 |
Supply done Free Of Cost
So, after taking the basic commodities that any common man consumes on a daily basis and calculating their approximate usage in a month, we find out the approximate per day GST that the end consumer has to bear. As per the above calculations, a common pays approximately Rs. 20 as GST. The approximate value can go up or even down depending upon the type of product that the consumer is consuming. He may consume better quality or even lower quality of products, but basic approximate selling price has been considered for calculation purpose.
It can be said that the government through GST has tried to keep most of the essential commodities like rice, flour, pulses, in the negative list thereby ensuring that the end consumer doesnot have to bear unnecessary cost. Due to this overall GST per day is kept at a lower level as compared to the previous taxes that the common man used to bear before the GST was brought in this country.
For any question visit us at GST Discussion Forum
The author of above article is Tanuja Puri, Assistant Professor.
You can also submit your article by sending a mail to [email protected] or whatsapp us at 7024984925.
