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Kumar Sushank (Querist)
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29 October 2017 If I am purchasing a service and selling to a client then can I charge GST 18% on my margin only.
Purchase Cost : 5000/-
Selling Cost : 7000/-
Profit Margin : 1695/-
GST (18% on margin): 305/-

Udaya Chandran

Udaya Chandran (Expert)
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30 October 2017 Assuming that selling price includes your profit, you need to charge GST on the total sales invoice value including your profit margin. GST @ 18% on purchase price of Rs.5000 is 900/- and selling price is 1260/-, the difference of Rs.360/- you pay to Govt. by taking and adjusting input of Rs.900.

Kumar Sushank

Kumar Sushank (Querist)
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30 October 2017 GST Council 22nd Meeting on dated 6th Oct, Reverse Charge Mechanism (RCM) has been abolished till 31st Mar 2018, as per my knowledge most company are using this calculation GST @ 18 % on only profit margin. These company are showing that they are commission agent category or other category. Is it right or wrong? If I'll show that I am working as tour operator service then in that case GST will 5% on total invoice value but I can't take ITC.
Please suggest for this, How can I charge GST & Percentage details also?

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Udaya Chandran

Udaya Chandran (Expert)
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31 October 2017 Margin scheme is available only for those dealers dealing with second hand goods.

Kumar Sushank

Kumar Sushank (Querist)
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31 October 2017 Ok, then according to this we have to charge 5% GST on total value & I"ll not claim ITC, because I will work as a tour operator services. Is this right?
Please suggest.

Udaya Chandran

Udaya Chandran (Expert)
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01 November 2017 Yes, you can charge GST @ 5% without taking credit of ITC.