Situation 1 – I purchase a finished product or raw material on “Purchase Price” in India, In this purchase price the seller has already added GST. Now I add my profit margin on top of this ‘Purchase Price’ and then export it without adding GST in the Invoice and then later claim for GST which I paid during the purchase which was part of the purchase.
Situation 2 – I follow the above thing except that while adding my profit margin before export I subtract GST amount from my profit margin to conclude the final export selling price (as that GST I will be getting after claiming)
Situation 3 – I pay GST when I am purchasing (as already added in the purchase price) and then export (sell) the product after adding GST, this would be a higher figure of GST than what I already paid during purchase as now GST is calculated on my selling price which includes my profit margin also and then later claims for the GST which I added on export selling price. So basically when I am claiming on this GST which I added to the export selling price then I would be getting a refund of the complete GST figure (the figure which I gave at the time of purchase which I added in the export selling price with a higher amout of GST based on the final selling price of export).
Please tell me which situation will actually happen in the case of Export ?
CAclubindia
