UNDER GST

 

Determination of cost or price structure in the GST

All invoices received and raised after the appointed day would be subject to GST. Therefore, it is essential to determine the impact on the cost, right now, without waiting for the final day. The impact would depend, inter-alia, the following factors:

(i) Existing rate of VAT and excise duty v/s Tax rates under GST.

(II) CENVAT/Input tax credit presently available v/s Availability of input GST credit.

(iii) Non-creditable list in the GST.

style="font-size: medium;">(IV) Impact on input suppliers and output receivers of the concerned entity under the GST.

(v)  Taxes/activities to be kept outside the scope of GST, such as, stamp duty alcohol and petroleum products.

(vi) Change in the manner of determination of supply and its valuation under the GST, May transaction, even without consideration, would be deemed as supply and be subject to GST.

(vii)  Cost of additional human resources and professionals for compliance of GST provisions.

(viii) Capacity of the supplier to pass on the additional GST burden to its customers.

(ix) Denial of Input credit to an entity due to non-deposit of taxes by its counterparty suppliers.