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‡ Only Two, Uniform Rates under C-GST & S-GST (4% / 5% & 8% /
10%). However, the GST Rate on services would be single, higher
Rate ( 8% / 10%).

‡ No tax on tax (common tax base for C-GST & S-GST), No

cascading effect of tax burdens on inputs and availability of full
Input tax credit.

‡ As the Input Costs would be reduced, there would be reduction in

final Prices to the Consumers in the competitive business
environment
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‡ All important provisions would be uniform under the C-GST & S-GST

‡ No major Refund issues for the industry except for Exporters & Incentive Units.

‡ No declaration Forms for concessional Rate of Tax (like CST forms, at present)

‡ Computerization would take over the compliance, Online Returns, Payments,

cross checking of the transactions, etc.

‡ The Central Agency (Clearing House) would do all the important tasks like
transferring the funds between the states, cross verifications etc. The industry
would not be burdened with such tasks.
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‡ No Common S-GST Act to be passed by the Parliament but separate S-GST
Acts to be passed by the respective State Assemblies (Scope for deviations
by the States)
‡ Blockage of funds / cash flow issues for the companies as GST would be
applicable on interstate depot transfers. No credit would be available on the
finished goods in stock at such depots unless they are sold. Similarly for
stock of Imported Goods.
‡ All States are not yet fully computerized.
‡ Implementation of GST from the middle of the Financial Year (GST should be
implemented on 1st April, otherwise serious systems and compliance
problems would crop up)
‡ No mention of S - GST levy on Works contract , Lease transactions and
Services in the discuss paper.
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‡ No detailed discussions yet with the Industry and Trade on various issues of
GST.
‡ The important information / details like the exact Rates of GST, definitions /
explanations on Taxable Events, Valuations, Supply, Registrations under C-
GST and transitional provisions etc. are yet to be known. (Industry is
hopeful that in the second discussion paper all such information would be
available).
‡ Octroi Duty is not being subsumed in GST (Maharashtra Industry would be
badly affected )
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‡ On interstate sales of goods, CST would be phased out. I GST would be

applicable on both interstate sales of goods & services and intestate depot
transfers of goods. However, full credit of IGST paid would be available to
depots and interstate Buyers. Thus, under GST, both the distribution routes
namely interstate depot transfer and direct interstate sales to the dealers /
customers would be at par. Depots would continue only for logistics and
marketing purposes.
‡ No Declaration Forms (like C and F Forms at present) under GST.
‡ To study the transitory provisions, particularly the refunds of goods in stock.
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‡ Need for proper Computer System Support for the companies for C -GST &
S-GST, Input & Output Registers for the Returns / payments purpose (the
companies must update their computer systems for smoother
implementation of GST).
‡ Sales tax / Excise Exemptions Units should watch the availability of the
benefits under the proposed GST System.
‡ There would be positive impact on the input costs as there would not be
CST cost, no tax on tax (at present VAT / CST is applicable on Excise
Duty), no cascading effect of taxes, availability of full input tax credit without
any reduction by the government. If the total GST Rate (C-GST + S-GST)
would be lesser than present Excise Duty + VAT / CST + other taxes (if
any), then there would be Positive Impact on the prices of the finished
goods.