Presentation by

DR. N RAMALINGAMAssociate Professor

Gulati Institute of Finance and Taxation Government of Kerala

Thiruvananthapuram

DUAL GOODS AND SERVICES TAXATION IN INDIA

PRICE AND TAX CALCULATIONS UNDER THE SUPPLY CHAIN

rama64@rediffmail.com

2

INTRA-STATE TRANSACTION

RAW MATERIAL SUPPLIER (First Dealer)

3

4

MANUFACTURER (Second Dealer)

5

WHOLESALER (Third Dealer)

6

RETAILER (Fourth Dealer)

7

FINAL CONSUMER

8

REVENUE TO CENTRAL & STATE GOVERNMENTS

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INTER-STATE TRANSACTION

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RAW MATERIAL SUPPLIER ( First Dealer) ( STATE -TAMIL NADU)

NO. PARTICULARS

CENTRAL EXCISE

DUTY / STATE SALES TAX (UPTO

31-3-2005)

CENTRAL EXCISE DUTY / STATE VALUE ADDED TAX ( FROM 1-

4-2005)

CENTRAL GST / STATE GST [FROM 1-4-

2016(?)]

Situation -1 Situation -2 Situation -3

1 Raw materials 500.00 500.00 500.002 Expenses & Profits / losses 300.00 300.00 300.003 Total 800.00 800.00 800.00

4 Central Excise Duty / Central GST (10%) N.A. N.A. 80.00

5 State Sales Tax /State Value Added Tax/ State GST (10%) 80.00 80.00 80.00

6 Sale Value [3+4+5] 880.00 880.00 960.007 Remittance to Central Govt. NIL NIL 80.008 Remittance to State Govt. 80.00 80.00 80.00

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MANUFACTURER ( Second Dealer & Inter-State Seller) ( STATE -TAMIL NADU )

(PURCHASES WITHIN THE STATE ONLY )

NO. PARTICULARS

CENTRAL EXCISE DUTY / STATE SALES

TAX ( UPTO 31-3-

2005)

CENTRAL EXCISE DUTY /

STATE VALUE ADDED TAX ( FROM

1-4-2005)

CENTRAL GST / STATE GST [FROM 1-4-

2016(?)]

Situation -1 Situation -2 Situation -3

1 Purchases (Basic Price) 1380.00 1300.00 1300.00

2Central Excise Duty / Central GST (10%) 138.00 138.00

260.00

3Central Sales Tax (4% or 2%)/ Integrated GST (20%) 60.72 28.76

4Purchase Value (excluding Sl.Nos.2 & 3 .for Situations 3) 1578.72 1466.76 1300.00

5 Expenses & Profits / losses 200.00 200.00 200.006 Total [4+5] 1778.72 1666.76 1500.00

7Central Excise Duty / Central GST (10% ) N.A. N.A. 150.00

8

State Sales Tax / State Value Added Tax / State GST (10% )

177.87 166.67 150.00

9 Sale Value [6+7+ 8] 1956.59 1833.43 1800.00 Alt.2 Alt.310 Remittance to Central Govt. N.A. N.A. 0.00 40.00 20.00

11Remittance to Purchaser's State Govt.(Kerala) 177.87 166.67 40.00 0.00 20.00

12Trasfer by the Central Agency to the Purchaser's State Govt.(Kerala) N.A. N.A. 110.00150.00 130.00

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INTER-STATE PURCHASER (STATE - KERALA)