If I have purchased the item for 900 rupees with gst 5% then if I sell the item for rs 1500 then should I have to add 12% gst?
What will happen to credit in such case ?
8 Replies
Bharat bhushan
(Chartered Accountant)
(143 Points)
Replied 29 June 2017
You can take credit of GST paid on item purchased, rate on item sold does not affect input GST paid on purchase of goods. There is not any provision which affect availment of credit due to difference in GST rate on purchase and sale of item.
RAJA P M
("Do the Right Thing...!!!")
(128101 Points)
Replied 29 June 2017
Mr. Dindayal.,
I'm not understanding your query. How to you sale 5% goods to 12% tax....
I'm not understanding your query. How to you sale 5% goods to 12% tax....
Dindayal singh
(29 Points)
Replied 29 June 2017
Mr. Raja,
rates below 1000 is 5%, and above 1000 is 12% for readymade garments.
rates below 1000 is 5%, and above 1000 is 12% for readymade garments.
RAJA P M
("Do the Right Thing...!!!")
(128101 Points)
Replied 29 June 2017
Yes Mr. Dindayal...
As usual you can adjust your ITC on purchases. If you collect tax for the sales after you pay the amount as per liability....
As usual you can adjust your ITC on purchases. If you collect tax for the sales after you pay the amount as per liability....
Vinay Garg
(Student cum businessman cum professional)
(859 Points)
Replied 29 June 2017
Assuming both the prices (900 and 1500) before charging gst, ITC will be 45 whereas Output liability will be 180. Net output liability 135.
RAJA P M
("Do the Right Thing...!!!")
(128101 Points)
Replied 29 June 2017
Exactly Mr. Vinay Gary....
RAJA P M
("Do the Right Thing...!!!")
(128101 Points)
Replied 29 June 2017
Exactly Mr. Vinay Garg....
JITENDRA KUMAR SHARMA
(ARTICLE)
(213 Points)
Replied 29 June 2017
as you are selling ready made garments in vat
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