Very useful video. At present people have a confused idea about GST. This explanation helps understanding it in the base level. Thank you and please do add such videos in future also
thanks you bro.... when i was tuning your video, my mind was went to class 7 when we used to learn the "Compound Interest".... interest on interest amount" so no tax on paid tax amount.....good video ...
Mr.Krishna, thanks for the Video. I would have loved the video more, if you gave a similar calculation example with GST , like the one you gave for the current Taxation system.
GST में मुख्य समस्या ये है कि यदि बेचने वाले एक व्यापारी ने खरीदने वाले व्यापारी को 1000 रुपये का सामान बेचा और उसपर 200 रुपये का जी.एस.टी. लगाया और बेचने वाले व्यापारी ने सरकार को वो टैक्स नहीं दिया और भाग गया तो खरीदने वाले व्यापारी को वो टैक्स दोबारा भरना पड़ेगा | इसमें खरीदने वाला व्यापारी चाहे चेक से पेमेंट करे, तो भी बेचने वाला व्यापारी भाग सकता है | . क्योंकि बड़े व्यापारियों को भागना मुश्किल होता है और छोटे व्यापारियों को भागना मुश्किल, इसिलए इस टैक्स कानून के कारण लोग छोटे व्यापारियों / उद्योग-पतियों पर भरोसा नहीं करेंगे, चाहे वे ईमानदार भी हों तो भी | . इसका समाधान निम्न प्रकार से है - . १) एक अलग से जी.एस.टी. खाता बनना चाहिए हर व्यापारी का | खरीदने वाला व्यापारी बेचने वाले व्यापारी के जी.एस.टी. खाते में पैसा जमा करेगा | और कोई भी व्यापारी जी.एस.टी. खाते से अपने व्यक्तिगत खाते में पैसा नहीं ट्रांसफर कर सकता, केवल दूसरे जी.एस.टी. खाते में डाल सकता है या सरकार जरूरत पड़ने पर उस खाते से पैसा निकाल सकती है, जैसे जब व्यापारी बिना पैसा लिए भाग जाये | . २) हम संपत्ति कर का भी सुझाव देते हैं क्योंकि उसमें इस `Missing Trader Problem` (गैर-हाजिर व्यापारी) की समस्या नहीं है | इसके बारे में आप अधिक जानकारी इस लिंक से लें - tinyurl.com/SampattiKar
Indeed very nice explanation. however i have some question. first that since entire GST to be paid by end consumer and that he/she will pay to the retailer(last person). Now how that entire GST goes to the upper level, maintaining the basic principle of GST. Also how the billing at each level will e carried out.
I have some double s 1).I am local seller ,with in state here I need to take GST. (Here GST Collect more tax than previous tax system) 2).I today say news paper (1-7-2017) for 100 rupees goods price will drop 3).for 5000 Rupees price increasing may be. so don't divert consumers& 4)due to demonitisation GDP degresed 2% 5)due to this GST ,GDP will degress minimum 3℅ 6).Laptop is not a status symbol,it will use for education 7).you have courage give me correct GST results So realise your self (I have the human right for expression my view)
Very good explanation of GST. Thanks for making this. There is should be a good explanation of how GST will reduce the cost to common man in the long run. This is not clear from any video or from any calculation. I want an exact real world example to understand this. Please do share if you have one.
how can a manufacturer have zero purchases. also in manufacture process there are hundreds of small items and it is difficult to estimate quantum of raw materials used especially is engineering items and fabrication.
lol.......just imagine if the manufacturer made a Radio, he uses all the 1000 different parts, like speaker,wire, screw, soldering, plastic case, resistor, capacitor, ic, PCB, boards, Tuner,Transmitter etc, he had paid tax for those all, it doesn't mean he have to show all the purchasing and summarized to on an average amount, its better to bundle up the things and give a good margin and put the SP, so it is absolutely correct that the manufacturer purchase is not based on one product so we can considered it as 0 Purchase.... Criticizing is a good act but, have the proper knowledge.
Seekerone D He says at the beginning itself that it was an very simplified example, done that way to enhance understanding of how taxation will be applied.
Manoj Hp taking purchase as zero is just an example although it's technically impossible to do that. Now coming to your question as u said u have purchased raw material and given to a dealer to manufacture to produce cup, The tax liability will be on that dealer known as CENVAT or in previous laws excise duty. Because u have purchased the product it is better to drow an exemption from department(CBEC) and pay the tax yourself because in this way u will be able to take credit of tax paid on purchase of material and pay only balance tax on manufactured product. Now u must be thinking that why should I pay the excise duty when the manufacturer of cup is ready? It is because u r only transferring the liability to pay the tax he is anyway charging the tax from u in form of cost which you should demand to deduct from the price and take the liability as it will save u the double tax on the material u purchased.
Seekerone D Taking purchase as zero is example and it is obviously not possible in real life. Secondly estimating the cost of several parts used is important and is studied by professionals like us (CS/CMA/CA) and is definitely possible on a mass scale although 100% accuracy can't be achieved in anything in this world but u can reach the closest value though input-output ratios which are then certified by excise officer
brother explained very well and your presentation so good..you simply explained with neat chart examples. I learnt lot from this video.any demerits in GST? and also kindly, update about banking deposit interest..it wil be very useful.thanks
According to the explanation given as per your perspective, the tax cascading effect is still present!. While some other experts argue differently. The GST system is supposedly designed to increase the tax rate along with reduced product prices. The argument is such that the wholesaler will be paying tax less the tax paid by his creditor which will decrease the tax paid by the wholesaler thereby increasing his margin and thus reduction in product price. This is the explanation that is widely circulated.Please prove that this theory is wrong and yours is right! will give thumbs up for that.
RICHARD STEPHEN the tax cascading is precisely what will be stopped with GST which is what is explained in the video with an example of before and after GST
bt what happen when there different tax slab like 5, 12, 18, 28 % ??? Manufacturer might b paying in different slab and finished product may b liable to pay diffnt tax then wht to do ???
Bhavik Khatiwala very good question but I highly doubt whether he can give an answer to this puzzling question since his knowledge is limited... VAT was already introduced to counter Cascading effect of taxes...
Gud explanation & examples of GST. But we need look beyond technicals..1) Cascading of taxes? Not rally. In your example Rs 270 portrayed as tax on tax but it is not so. State tax VAT always lavied inclusive of central taxes like CST, excise duty etc.(lavied at manufacturing). So under GST centre protects its revenues but states loose thr limited revenues. Like in USA, India should b state centric & not centre centric (bcoz we are diverse & federal) for economic development. States must have more revenues as centre can't (& shud not) play role in state affairs. 2) GST is VAT system. Even in GST existing system of value addition continues as per ur example of mfg, dealer& retailer (exist in VAT as well as CENTVAT). Nothing new in GST.3) Coming to benefits..(a) Better tax collections? Not really..since manufactuers were few it was easier to collect but now centre will find it difficult due to large tax payers.(b) competitive? States loose thr right to prescribe thr own tax rates under disguise of all India same rate rate. So competitiveness lost. Eg. Do we hv same price on mobiles? (c) ease of biz.. Plz look at number of filings in before & in GST now..even retailers rqrd to file unlike earlier( not necessary in GST bcoz tax is already collected by dealer). His filing sufficient. (d) easier movement of goods..it is clear now that e-waybill is being put in place..alrady many states have now software except North ..so policing of goods can movement acrs remains.Gud thing abt GST is central taxes moves to sales point like VAT. But GST rates of states ie State GST part acrs India shud not be same. It is politically & economically dangerous to India to have uniform rates. Let states determine thr own taxation needs. Our politicians will soon realize the mistake. Even when VAT was implemented it was to b uniform but soon fell apart. Hope same thing happens to GST.
if i am the retailer, what if the wholesaler did not pay his part of tax? should i be paying this tax? when do the retailer get the documentation and how to get it from the wholesaler? at the time of purchase of goods from wholesaler or end of year ?
very informative...but something to miss out are the drawbacks. There is always a question pop up in my mind that if the distributor obtained the returned tax from govt. but did not show it to the retailer as per your example. This case may exponentially grow the corruption rate (not talking about large scale industries but for small and medium size industries). please explain it sir
hello sir. I want to buy a machine from Andhra Pradesh to Odisha. and the machine cost is 8laks + 2%CST. now the manufacturer says they will deliver it after 28th June. so I want a suggestion from you dat should I buy it before GST (1st July) or after GST ????
Im providing services by using proclainers..And I want to register under gst for proclainers .I don't no its taxable r not (if it is taxable what code should be mention in invoice ?
Thank you sir, I am an Importer of raw material in chennai, after importing I have to process the material in hyderabad and than sell it, how will gst help me??
when manufacturers and traders stop paying tax on tax, their margins will increase and eventually, it will get passed on to end customer. Which is why, past history in other countries has shown that it takes time for the end customer to benefit
sss, more informative but what my doubt is, whether these fruits would reach the common man or enjoy by the business men? I have another doubt whether the govt lose its income?because it collects tax at so many points(much).but G.S.T. collects tax at only one point(later on value added).In what way we think it, that means govt sacrifices at the cost of the welfare of people or any other reason is there behind it.because income is must to the govt but G.S.T. reduces the income of the govt.govt always try to improve its income, but here.....
Good explanation. But this is just a tip of iceberg. What about manufacturer procuring raw materials from other manufacturers. There is a good length of chain here aswell. For e.g yarn mf -> fabric grey -> fabric finished -> shirt -> then to ws and to retailers. The tax added will be much more. Ps: why do u narrate as though ur audience are KG students!!
Superb explanation. Only today i understood the real meaning of 'VAT'.. OMG.. Most of the times the retailers gave a wrong information of VAT
thank you...
Nagen P VAT paid by seller only the difference of amount
Very good explanation in this video
ತುಂಬಾ ಚೆನ್ನಾಗಿ ವಿವರಿಸಿದ್ದೀರಿ. ಧನ್ಯವಾದಗಳು.
Well explained. Thank you.
Very useful video. At present people have a confused idea about GST. This explanation helps understanding it in the base level. Thank you and please do add such videos in future also
thanks you bro.... when i was tuning your video, my mind was went to class 7 when we used to learn the "Compound Interest".... interest on interest amount" so no tax on paid tax amount.....good video ...
Sir you clearly explained all about GST......at which I gained some knowledge.....Thank You so much sir
It's really gr8...we have just been hearing about gst...what it is actually doing to the system....i have finally understood
Mr.Krishna, thanks for the Video.
I would have loved the video more, if you gave a similar calculation example with GST , like the one you gave for the current Taxation system.
GST में मुख्य समस्या ये है कि यदि बेचने वाले एक व्यापारी ने खरीदने वाले व्यापारी को 1000 रुपये का सामान बेचा और उसपर 200 रुपये का जी.एस.टी. लगाया और बेचने वाले व्यापारी ने सरकार को वो टैक्स नहीं दिया और भाग गया तो खरीदने वाले व्यापारी को वो टैक्स दोबारा भरना पड़ेगा | इसमें खरीदने वाला व्यापारी चाहे चेक से पेमेंट करे, तो भी बेचने वाला व्यापारी भाग सकता है |
.
क्योंकि बड़े व्यापारियों को भागना मुश्किल होता है और छोटे व्यापारियों को भागना मुश्किल, इसिलए इस टैक्स कानून के कारण लोग छोटे व्यापारियों / उद्योग-पतियों पर भरोसा नहीं करेंगे, चाहे वे ईमानदार भी हों तो भी |
.
इसका समाधान निम्न प्रकार से है -
.
१) एक अलग से जी.एस.टी. खाता बनना चाहिए हर व्यापारी का | खरीदने वाला व्यापारी बेचने वाले व्यापारी के जी.एस.टी. खाते में पैसा जमा करेगा | और कोई भी व्यापारी जी.एस.टी. खाते से अपने व्यक्तिगत खाते में पैसा नहीं ट्रांसफर कर सकता, केवल दूसरे जी.एस.टी. खाते में डाल सकता है या सरकार जरूरत पड़ने पर उस खाते से पैसा निकाल सकती है, जैसे जब व्यापारी बिना पैसा लिए भाग जाये |
.
२) हम संपत्ति कर का भी सुझाव देते हैं क्योंकि उसमें इस `Missing Trader Problem` (गैर-हाजिर व्यापारी) की समस्या नहीं है | इसके बारे में आप अधिक जानकारी इस लिंक से लें - tinyurl.com/SampattiKar
After watching many videos..this one made me clear...very nice explanation.
It is very good video explaining GST in simple language and supported by excellent example. Thank you Sir!
Thank You so much for this wonderful and easiest explanation about GST. We are sharing this video through our website to tell people about GST.
One of those rare videos in which I am actually going to give a like!
Thanks for the explanation.
GST unmystified beautifully in short & crisp manner, thank u :)
I liked how you included even ANI and Lakshadweep which most people don't include
Thank you :)
one of the great explanation i have ever heard about GST
thank you
Simple and Good explanation on seemingly a critical thing to understand.
Highly superb explanation in a very stipulated amount of time sir.Thank u very much 👌🙏
thank you
Can you explain a bit about the self policing mechanism involved in GST? How will this improve the tax collections from the unorganized sector?
Superbly explained about GST.. Thanks a lot sir
this one is really good explanation i have come thru.. crisp and to the point .. appreciate.. do come up with such videos.is Nice explanation
Best available example on youtube!Thankx man!
Thank u very much sir this is one of the most understandable and with best exaplination and example presentation😊
thank you
Nice Video....
Got all basic of GST ....
Now I can dig Dipper........
Indeed very nice explanation. however i have some question. first that since entire GST to be paid by end consumer and that he/she will pay to the retailer(last person). Now how that entire GST goes to the upper level, maintaining the basic principle of GST. Also how the billing at each level will e carried out.
I have some double s
1).I am local seller ,with in state here I need to take GST.
(Here GST Collect more tax than previous tax system)
2).I today say news paper (1-7-2017)
for 100 rupees goods price will drop
3).for 5000 Rupees price increasing may be.
so don't divert consumers&
4)due to demonitisation GDP degresed 2%
5)due to this GST ,GDP will degress minimum 3℅
6).Laptop is not a status symbol,it will use for education
7).you have courage give me correct GST results
So realise your self
(I have the human right for expression my view)
ths vdo is easy to understand... thanks krishna, keep educating ppl 😉 i'll be more thankful if you could make a detailed video on jewelry...
Very good explanation of GST. Thanks for making this.
There is should be a good explanation of how GST will reduce the cost to common man in the long run. This is not clear from any video or from any calculation. I want an exact real world example to understand this. Please do share if you have one.
how can a manufacturer have zero purchases. also in manufacture process there are hundreds of small items and it is difficult to estimate quantum of raw materials used especially is engineering items and fabrication.
lol.......just imagine if the manufacturer made a Radio, he uses all the 1000 different parts, like speaker,wire, screw, soldering, plastic case, resistor, capacitor, ic, PCB, boards, Tuner,Transmitter etc, he had paid tax for those all, it doesn't mean he have to show all the purchasing and summarized to on an average amount, its better to bundle up the things and give a good margin and put the SP, so it is absolutely correct that the manufacturer purchase is not based on one product so we can considered it as 0 Purchase.... Criticizing is a good act but, have the proper knowledge.
Seekerone D He says at the beginning itself that it was an very simplified example, done that way to enhance understanding of how taxation will be applied.
Manoj Hp taking purchase as zero is just an example although it's technically impossible to do that. Now coming to your question as u said u have purchased raw material and given to a dealer to manufacture to produce cup, The tax liability will be on that dealer known as CENVAT or in previous laws excise duty. Because u have purchased the product it is better to drow an exemption from department(CBEC) and pay the tax yourself because in this way u will be able to take credit of tax paid on purchase of material and pay only balance tax on manufactured product. Now u must be thinking that why should I pay the excise duty when the manufacturer of cup is ready? It is because u r only transferring the liability to pay the tax he is anyway charging the tax from u in form of cost which you should demand to deduct from the price and take the liability as it will save u the double tax on the material u purchased.
Seekerone D Taking purchase as zero is example and it is obviously not possible in real life. Secondly estimating the cost of several parts used is important and is studied by professionals like us (CS/CMA/CA) and is definitely possible on a mass scale although 100% accuracy can't be achieved in anything in this world but u can reach the closest value though input-output ratios which are then certified by excise officer
brother explained very well and your presentation so good..you simply explained with neat chart examples. I learnt lot from this video.any demerits in GST? and also kindly, update about banking deposit interest..it wil be very useful.thanks
very nice and to the point explaination..looking for more such videos in the future..cheers!
how it works and what are the changes in service tax on goods tranport agency
the video is good but you should also include the current tax structure in the same example so that layman can distinguish the difference directly.
gud video sir ,now i understand gst clearly from scratch
According to the explanation given as per your perspective, the tax cascading effect is still present!. While some other experts argue differently. The GST system is supposedly designed to increase the tax rate along with reduced product prices. The argument is such that the wholesaler will be paying tax less the tax paid by his creditor which will decrease the tax paid by the wholesaler thereby increasing his margin and thus reduction in product price. This is the explanation that is widely circulated.Please prove that this theory is wrong and yours is right! will give thumbs up for that.
RICHARD STEPHEN the tax cascading is precisely what will be stopped with GST which is what is explained in the video with an example of before and after GST
Thanks for excellant video. One question : what will be the price paid by the last consumer in this chain.
bt what happen when there different tax slab like 5, 12, 18, 28 % ??? Manufacturer might b paying in different slab and finished product may b liable to pay diffnt tax then wht to do ???
Bhavik Khatiwala very good question but I highly doubt whether he can give an answer to this puzzling question since his knowledge is limited... VAT was already introduced to counter Cascading effect of taxes...
wow its really very good explanation Thanks for valuable information ..
Sir what about the price of goods imported from other countries. for e.g. motorbikes for Japan n Korea?
Gud explanation & examples of GST. But we need look beyond technicals..1) Cascading of taxes? Not rally. In your example Rs 270 portrayed as tax on tax but it is not so. State tax VAT always lavied inclusive of central taxes like CST, excise duty etc.(lavied at manufacturing). So under GST centre protects its revenues but states loose thr limited revenues. Like in USA, India should b state centric & not centre centric (bcoz we are diverse & federal) for economic development. States must have more revenues as centre can't (& shud not) play role in state affairs. 2) GST is VAT system. Even in GST existing system of value addition continues as per ur example of mfg, dealer& retailer (exist in VAT as well as CENTVAT). Nothing new in GST.3) Coming to benefits..(a) Better tax collections? Not really..since manufactuers were few it was easier to collect but now centre will find it difficult due to large tax payers.(b) competitive? States loose thr right to prescribe thr own tax rates under disguise of all India same rate rate. So competitiveness lost. Eg. Do we hv same price on mobiles? (c) ease of biz.. Plz look at number of filings in before & in GST now..even retailers rqrd to file unlike earlier( not necessary in GST bcoz tax is already collected by dealer). His filing sufficient. (d) easier movement of goods..it is clear now that e-waybill is being put in place..alrady many states have now software except North ..so policing of goods can movement acrs remains.Gud thing abt GST is central taxes moves to sales point like VAT. But GST rates of states ie State GST part acrs India shud not be same. It is politically & economically dangerous to India to have uniform rates. Let states determine thr own taxation needs. Our politicians will soon realize the mistake. Even when VAT was implemented it was to b uniform but soon fell apart. Hope same thing happens to GST.
Dear sir this tax calculation system is also for pharmaceuticals???
Really great informative video .Soprb work sir ...
how does a retailer guarantee that the whole sellers paid his tax? I find that this will only increase more headache for Small business houses.
very Good excellent explanation. ...thankfully sir..👍
The narrator forgot that this tax on tax problem was already solved by modvat credit.
can you tell what will be the documentation to be provided by the wholesaler to th retailer.
it is a remarkable for our country.
best explanation of GST.
thank you
Wow!!!
What a good video. Great explanation.
Thank you.
Glad it was helpful!
What if someone imports goods in this case how GST will play it's role..? Please advice
Thanks sir for your nice explanation
Sir its easy to understand by the way u showned. Thanks and make as simple as u can
Koppula Mahender thank you
PLEASE DO THIS VIDEO IN ALL THE 22 OFFICIAL LANGUAGES OF INDIA! IT WILL GAIN A MUCH WIDER AUDIENCE FOR THOSE FOR DON'T KNOW ENGLISH!
wholesale customer buy the product for 10k + 1000 tax or
tax is included in 10,000 ?
Very Impressively explained. Thanks Boss.
if i am the retailer, what if the wholesaler did not pay his part of tax? should i be paying this tax?
when do the retailer get the documentation and how to get it from the wholesaler? at the time of purchase of goods from wholesaler or end of year ?
simple and clear. a very good presentation..
thank you
nice info Krishna
you've described it very well.
Krishna this is really very good. Keep it up.
very informative...but something to miss out are the drawbacks. There is always a question pop up in my mind that if the distributor obtained the returned tax from govt. but did not show it to the retailer as per your example. This case may exponentially grow the corruption rate (not talking about large scale industries but for small and medium size industries). please explain it sir
Very good explanation thank u
hello sir.
I want to buy a machine from Andhra Pradesh to Odisha.
and the machine cost is 8laks + 2%CST.
now the manufacturer says they will deliver it after 28th June.
so I want a suggestion from you dat should I buy it before GST (1st July) or after GST ????
please Upload a Video on "% of taxes on various goods after GST" .
You say towards the end that short term prices will rise. I wish you had given some more examples regarding the same.
what software you used to make this video
nice exploration ..its useful for any one
though tax reduces in long term the benefit would go into pockets of sellers than the customers...
according to this video manufacturers have to pay more tax than wholesalers and retailers... Is it correct?
vikas gupta the tax is based on the 'value add' in each stage. Your interpretation isn't true
Im providing services by using proclainers..And I want to register under gst for proclainers .I don't no its taxable r not (if it is taxable what code should be mention in invoice ?
Appreciate it🇮🇳jay hind 🇮🇳support new change 🙏🏻
Thank you
I was just thinking that if I got one such teacher in my engineering college, I would have gone to places..😂
pwoli
This was really helpful Krishna! Thanks
thank you Prakash
nicely explained..... thank you
GST is applicable on Income or Profit ....?
GST is only replacing the indirect taxes, not direct taxes.
thanks bhi
Thank you sir, I am an Importer of raw material in chennai, after importing I have to process the material in hyderabad and than sell it, how will gst help me??
It was a great explanation video.
what is the fees to be paid for a new business man to get regd under gst
excellent sir..
pre implementation of GST is clearly explained but post implementation of GST is not clear. How it will reduce tax
when manufacturers and traders stop paying tax on tax, their margins will increase and eventually, it will get passed on to end customer. Which is why, past history in other countries has shown that it takes time for the end customer to benefit
Excellent. 👍
very well done sir
thank you for the information given.
sss, more informative but what my doubt is, whether these fruits would reach the common man or enjoy by the business men? I have another doubt whether the govt lose its income?because it collects tax at so many points(much).but G.S.T. collects tax at only one point(later on value added).In what way we think it, that means govt sacrifices at the cost of the welfare of people or any other reason is there behind it.because income is must to the govt but G.S.T. reduces the income of the govt.govt always try to improve its income, but here.....
pls tell me how to calculate 28 per tax gst ...valu of good is 20000 with 28% gst ....my gain 500 : total valu is 20500 how to calculate 28%
clean explanation...great job
wonderful explanation !!!
Great explanation
Very nice
wonderfully explained !!😄
Good work....! keep doing it...!
thank you sir
Nice vedio
well explained keep up the good work
Good explanation. But this is just a tip of iceberg. What about manufacturer procuring raw materials from other manufacturers. There is a good length of chain here aswell.
For e.g yarn mf -> fabric grey -> fabric finished -> shirt -> then to ws and to retailers. The tax added will be much more.
Ps: why do u narrate as though ur audience are KG students!!
seriously sir really great explanation and you really clear my all doubts thank you sir
thanks
well explained,