GST Reduction 28% to 18% for AVR from 16/11/2017

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In inter-state transaction of goods/services, IGST ( integrated GST) is charged. And intra-state or within a state SGST (State GST) and CGST (Central GST) are charged.
IGST:- When the goods/services are sold, the seller deposits IGST in his state and the buyer who belogs to a different state claims the input tax credit as already paid in terms of IGST. The IGST eventually gets devided in to SGST (destination state) and CGST.
So, IGST is a temporary mechanism which equally gets shared between state and centre.
 
prem said:
As I understand, if you import a speaker and value of speaker with freight is Rs 100, Rs 10 is the customs and on 110, a 18% IGST will be charged.
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That is exactly my understanding as well... And that the 18% IGST is claimed when the speaker is sold to the final consumer whose 18% is obviously higher than the IGST paid and therefore the final cost to the importer is Rs. 110...
 
The CVD part of customs duty can also be offset against GST so effective cost in above example would be lower than Rs110
 
I don't think the CVD exists anymore... It is a straight 10% customs duty and the appropriate IGST on the product cost + shipping + customs duty...

Now if you sell imported goods in cash or import for your own consumption, then the IGST is part of the cost. Otherwise it is an end tax borne by the consumer and no cost to the dealer...
 
If you are importing it for use in business I think you can account for it as a legitimate business expense and offset the IGST
 
That IGST can only be offset if you make a further sale of the product.. Only products which are used for production of the final goods, their IGST can be offset else the total cost will be treated as an expense or as an asset (depreciation purposes)...
 
@Hifimart there is some xtra discount on speakers after GST change.
May b it is coincident or am i correlating ,[emoji3]

Sent from my CPH1609 using Tapatalk
 
reachkalyan.kr said:
@Hifimart there is some xtra discount on speakers after GST change.
May b it is coincident or am i correlating ,[emoji3]

Sent from my CPH1609 using Tapatalk
Click to expand...

doubt it. The subwoofers are still priced on the same MRP like before, the distributors have not done any price correction. Atleast the top dogs like svs, sunfire etc haven't. Guess its only a onkyo thing for revising their over priced products :ohyeah:

Cheers.
 
panditji said:
So either the distributor has not got any new stock after 1st July or are simply not passing on the GST cost benefit and want to their already high margins...
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i guess they will give the price correction from next year, hopefully before march next year lol.

Cheers.
 
Custom duty for tvs, camera extra are increased from 10% to 15% from now. News was out this thursday, so can we expect an increase in price for subwoofers & avrs?

Cheers.
 
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