Query on billing

This query is : Resolved

Vaibhav Surana (Querist)
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29 June 2017 Dear Experts
I have a query regarding my billing in GST time. I am a trader of electrical goods having dealership of various companies. Currently when i do a billing to my client many a times the prices is inclusive of Excise (12.5%) and i only charge VAT (@5% or @14.5% depending on case to case).
Now in GST time if price is inclusive of Excise and VAT is only 5% how i can i charge 28% / 18% on the base value.
Just to describe better i am putting the numbers below:

Current Scenario
Base Price - INR 100 (inclusive of Excise Duty)
VAT - 5%
Total Billing Value - INR 105

GST Time
Base Price - INR 100
GST - 28%
Total Billing Value - 128

Why is customer pay me additional INR 23 at GST times or will i have to reduce my base value. If i reduce my base value the problem is whatever goods i am purchasing from my principal company that was also inclusive ED so will the principal also reduce its base price.

I am very confused with this scenario and need your help.

Regards
Vaibhav Surana

Amol S Joglekar

Amol S Joglekar (Expert)
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29 June 2017 the principal company is expected to reduce / adjust the price taking into account its ITC for excise and VAT. So it is quite likely that you can also sell to your customer without much change in the pre gst price

RAJA P M

RAJA P M (Expert)
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29 June 2017 My Vaibhav.,
Your Items Actual value is before Excise Duty. Example for your Quoted price 100... Pls understand the following steps.,

Basic Value in mfg : Rs. 77.66
Excise Duty 12.5% : Rs. 9.70 = 87.36
State Vat @ 14.5% : Rs. 12.67 = Total Rs. 100. This is mfg bill value to you. Then,

You prepared Rs. 100 + Vat @ 14.5% Rs. 14.5 = Rs. 114.5. This is Your bill value to customer.

Know the GST regime...
Basic Value in mfg : Rs. 77.66
GST @ 18% : Rs. 13.98 = 91.64 This is mfg bill value to you.

You prepared Rs. 77.66 + 7.77 (Your Margin @ 10%-Approx)= 85.43 + GST @ 18% Rs. 15.37 = Rs. 100.81 This is Your bill value to customer.

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Vaibhav Surana

Vaibhav Surana (Querist)
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29 June 2017 Thank you guys for the reply. But i hope the principal gives this adjustment.