<p>Current VAT rate is 5 to 5.5 percent in the manufacturing region. It will become 12% after 40 days! So, processors and traders should share the 6.5 to 7% extra burden! Inter state trade now attracts 5 to 5.5 percent VAT on raw cashew in the manufacturing region, plus 2% CST (Central Sales Tax) during the sale time. Then there is once again 5% VAT in the destination region. Therefore there is no significant loss in the 12% GST rate.</p> <p>However, if the raw cashew purchase is under CST (Inter State Purchase) and the sale of kernel is also under CST, total tax becomes 9% (2%+2%+5%VAT in the destination region). In this case the loss under GST is 3%. At present, total duty on raw cashew imports is 9.36%. This includes basic customs duty and a substitute for VAT called SAD. The basic customs duty will remain in the GST regime but instead of SAD the GST percentage is to be paid, i.e 12%. Their loss seems to be heavy. Small scale importers may face cash crisis during the release time.Exporters will have no problems from the tax rate structure but they may face some legal hurdles in the first few months of the GST. In the long run, Domestic consumption will fall but exports will increase. Harvest is also Bumper.</p>