GST is profit or loss

Page no : 4

g mahesh Mundra (Business and tax consultant) (3296 Points)
Replied 04 October 2017

Mr Raja I have raised one query in forum about trans1 will you pls help me

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RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 04 October 2017

please copy the link here...
I'll give best of my knowledge...

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CA Rashmi Gandhi (Chartered Accountant) (86323 Points)
Replied 04 October 2017

Clarifying TRAN 1 https://www.caclubindia.com/articles/details.asp?mod_id=30992

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ACMA M.Abdul Khaliq (CMA) (214 Points)
Replied 04 October 2017

How to claim ITC on old stock? Which Form to choose?

Any business having a closing stock -whether registered or not before GST, will be entitled to claim credit of tax paid under pre-GST regime. This claim of ITC also depends on few conditions which we will discuss further.

To help businesses transition smoothly and carry forward their input tax credit, the CBEC has released 2 transition forms called TRAN 1 and TRAN 2. Both these forms can be filed on ClearTax.

Form type	Who can file	Who cannot file	When to file
TRAN 1	Registered persons under GST, may be registered or unregistered under old regime	Those registering under GST as composition dealer	31st October 2017
TRAN 2	Registered persons under GST but unregistered or under old regime A dealer or trader who does not have documents of duty paid	A manufacturer registered under excise A service provider registered under service tax	Monthly from July 2017 to December 2017

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Mahesh Shaha (303 Points)
Replied 04 October 2017

Sir if manufacterer is taxable under Excise, Excise duty was 12.5% and Vat 13.5% and if GST is 28% then only 2% extra from buyer's pocket not for seller he is only media. If GST is 18%, then tax reduce to 8% is it right

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g mahesh Mundra (Business and tax consultant) (3296 Points)
Replied 04 October 2017

yes if you are a manufacturer nothing will loose from your pocket because GST starts from you for outward supply

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 04 October 2017

Yeahhhhh....
Over all Yes..
But, Based on VAT to GST it's not matched in my view only.
Bcoz, VAT is get some rate of tax.
So, Over all GST is best in my view. Also all provisions face starting troubles. The same is in GST (GST in only in website not in law. Law is pakka)

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g mahesh Mundra (Business and tax consultant) (3296 Points)
Replied 04 October 2017

but the retailer loose some amount if he holds closing stock of vat regime

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 04 October 2017

You ll be to back from Retailer. The product also included ED amount of on a manufacturer end....

g mahesh Mundra (Business and tax consultant) (3296 Points)
Replied 04 October 2017

I mean if I purchased from wholesaler before GST he won't give Ed paid bill only vat bill he gives

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Mahesh Shaha (303 Points)
Replied 04 October 2017

But mfgr used to Charge ED and VAT/CST as the case may be and dealer can not claim of ED as he was not Excise registered Person, this affect his cost of sale, in some cases GST is profit for dealer i

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g mahesh Mundra (Business and tax consultant) (3296 Points)
Replied 04 October 2017

maybe for dealer 1 is profit but subsequent dealer is looser

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 04 October 2017

Dear.,
Please understand the VAT. It's called "Value Added Tax". It means every stage the VAT is calculated....

From mfg it's 100 + ED + VAT = BV (Bill Value)
Next Stage it's BV + M (Margin) + VAT = BV 1...
Next Stage it's BV1 + M + VAT = BV 2...
next BV 2, BV 3, BV4....

So, the value is increasing from first stage to end-user....
No loss for dealers. Loss only by end user...

It's arrested in GST....

g mahesh Mundra (Business and tax consultant) (3296 Points)
Replied 04 October 2017

Mr Raja you didn't understand my question and problem here I asking those who are having closing stock on 30th June means retailer they suffer loss by selling their closing stock in GST regime because they can't claim cgst input without valid ED paid bill

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g mahesh Mundra (Business and tax consultant) (3296 Points)
Replied 05 October 2017

in vat regime I sold MRP of 100 as 87.3 plus vat 12.70 for which my cost was 78.60 plus vat 11.40 which is 90 now in GST I have 2 nos of the product as opening stock means 2x78.60= 156 which is exclusive of vat now I sold both in July at its MRP of 100 inclusive of GST means my selling price is now 78.10 plus GST 21.90 here I am selling below my cost price because of MRP