Difference between Revenue neutral rate and Interstate trade

Posted on 11 June 2022 Category : GST terms difference

How to differentiate Interstate trade with Revenue neutral rate?

What is Interstate trade? How does Revenue neutral rate work under GST regime? What are the difference between Interstate trade and Revenue neutral rate?

Under GST system, the following information explains about Interstate trade and Revenue neutral rate.

As per GST terms, Interstate trade From the very beginning of its deliberations the Constituent Assembly was keen to ensure the freedom of inter-State trade and commerce throughout the Union. In fact, one of the primary purposes of federal Union itself is the establishment of freedom of commerce. And Revenue neutral rate Focus under GST is to arrive at such rates which would not decrease the current revenue generation by Central & State government. Revenue neutral rate (RNR) is a structure of different rates established in order to match the current revenue generation with revenue under GST. RNR calculation has to include the cascading effect on certain goods having no excise or sales tax implications.

The details about Interstate trade and Revenue neutral rate with simple language from GST terms have been mentioned in this web blog separately. I suggest you to read these articles on Interstate trade and Revenue neutral rate, so as to enable you to have a clear idea on these GST terms.

For your immediate reference, We give below web links on Interstate trade and Revenue neutral rate separately below. You may kindly read the below links to know more about Revenue neutral rate and Interstate trade.

Interstate trade or commerce means

Term Revenue neutral rate (RNR) under GST

The above information easily explains about Revenue neutral rate and Interstate trade.

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