VAT ITC in GST
This query is : Open
22 May 2017
I am trading in fertilisers and insecticides. both items are lavied 6% vat in Maharashtra, and in GST fertilisers 12% and insecticides 18%. We will get ITC of 6% only and paying GST 12 & 18% respectively. There is loss to us of 6% in fertilisers and 12% in insecticides.
is there any solution for my problem?
22 May 2017
You are referring to the stock held on the date of implementation of GST. In such a case pass on the credit of 6% only to the customer you will not loose any thing.
22 May 2017
Fertilizers are MRP binding and only 2% margin on MRP. stock held on implementation of GST is inclusive of 6% vat. when we sale this stock after GST implementation, how can we sale these fertilisers more than MRP?
22 May 2017
You have to sell it more than MRP being the old stock held. You need not bear higher GST you have to pass it on to consumer it will be allowed under such circumstances.
22 May 2017
Thank you sir.
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