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GST is profit or loss

Page no : 2
Mahesh Shaha

Mahesh Shaha (303 Points)
Replied 02 October 2017

Please explain. If you see medicines purchase price and mrp,the ratio is maintain @ 20% as in the vat regime

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Rahul Srivastava

Rahul Srivastava (Practice) (101 Points)
Replied 02 October 2017

profit and loss is depends upon your business condition, business style, business costing and product margin.

g mahesh Mundra

g mahesh Mundra (Business and tax consultant)   (3293 Points)
Replied 02 October 2017

means that MRP includes 14.5% vat means 87.30 sale plus 12.7 vat my cost was 90 including vat @ 14.5% means 78.6 purchase price plus 11.4 vat my profit was 87.3-78.6=8.70 profit which is 10% now under GST same 78.1 sale plus 21.9 GST means 100 purchases70.3 plus GST 19.7 means 90 here 78.10-70.3=7.80 profit @ 10% means my margin is same but amount of profit is lesd

g mahesh Mundra

g mahesh Mundra (Business and tax consultant)   (3293 Points)
Replied 02 October 2017

is it profit or loss for me under GST because I am one of the original Enfield spare parts dealer in my area the company gives @ 10% discount on MRP before vat and after GST

g mahesh Mundra

g mahesh Mundra (Business and tax consultant)   (3293 Points)
Replied 02 October 2017

means in vat regime also 10% in GST also 10%

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g mahesh Mundra

g mahesh Mundra (Business and tax consultant)   (3293 Points)
Replied 02 October 2017

so amount of profit decreased or not

CA Rashmi Gandhi

CA Rashmi Gandhi (Chartered Accountant) (86308 Points)
Replied 03 October 2017

For sure amount of profit decreased. Only margin is same.

g mahesh Mundra

g mahesh Mundra (Business and tax consultant)   (3293 Points)
Replied 03 October 2017

so Rashmi ji by GST traders loss their amount of profit is it correct

g mahesh Mundra

g mahesh Mundra (Business and tax consultant)   (3293 Points)
Replied 03 October 2017

means in vat regime a person who earned 10 lakh as a profit now in GST only 9 lakh he will earn 1lakh he will loose

RAJA P M

RAJA P M ("Do the Right Thing...!!!")   (127977 Points)
Replied 03 October 2017

In my view.,
GST is overall profit to all dealers. But, Starting stage it's not reflect.
After 9months or 1year it ll reflect....

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g mahesh Mundra

g mahesh Mundra (Business and tax consultant)   (3293 Points)
Replied 03 October 2017

OK let us see Raja for the last 3 months I am loosing my profit

g mahesh Mundra

g mahesh Mundra (Business and tax consultant)   (3293 Points)
Replied 03 October 2017

means amount of profit

g mahesh Mundra

g mahesh Mundra (Business and tax consultant)   (3293 Points)
Replied 03 October 2017

those who are having lakhs of closing stock on June 30 also loosing their profit because of GST

RAJA P M

RAJA P M ("Do the Right Thing...!!!")   (127977 Points)
Replied 03 October 2017

How to you get loss...?!
Are you less your basic Prize...?
Are you sell without profit or with loss of value...?


But, May be its starting way is going down. But, it's reach to Successfully in future...

Benefits of Input credit is many ways...
Also get adjustments for inter State purchases tax...
Service oriented bills ITC allowed
Assets related tax is taken as ITC.
Unused ITC taken as refund

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g mahesh Mundra

g mahesh Mundra (Business and tax consultant)   (3293 Points)
Replied 03 October 2017

the government will never refund unused ITC to the traders they can set-off their liabilities against unused ITC


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