Menu
gst. levying of tax by whom
when there is transfer of good say almond from one person to another from manufacture to big wholesaler and small wholesaler and retailer then to shopkeeper and to customer and the tax rate on it is 18% who will levy this 18% .. if ever person levy then won't it be tax on tax
Replies (12)
No, the seller (A) charge the tax from buyer(B) and pay to Govt
The buyer (B) will charge from consumer (C) and deduct the tax paid to (A) from it and pay balance to govt. This is called taking input credit. The tax on only value addition is paid at each stage.
sir when the tax is 18%under gst for a good and A impose 18% for the good what amount of % do B impose ...sorry I couldn't understand explain with an example
thank u why don't u explain with an example
For example if A sells goods to B for Rs. 100 and A charges GST @ 18% i.e. Rs. 18 (18% of 100) and A collects 18 rs from B and he pays Rs. 18 as GST to Government.
Then B sells those goods to C for Rs. 150 and B charges GST of Rs. 27 (18% of Rs. 150) then B will pay Rs. 9 (27-18) as GST to Government.
Here, 18 rupees is the INPUT TAX CREDIT for B.
Then B sells those goods to C for Rs. 150 and B charges GST of Rs. 27 (18% of Rs. 150) then B will pay Rs. 9 (27-18) as GST to Government.
Here, 18 rupees is the INPUT TAX CREDIT for B.
thank sir
but sir if same almond is passed on from person A manufacture to person B wholesaler and the same almond without any change is passed on from B to retailer C and without any change to shopkeeper D .. why should 18% tax be charged for same good again and again. won't it be tax on tax ..only when persons r gonna add profit and sell
The GST will be charged on the amount value addition at that stage (value addition also includes profit) as the registered dealer will get the Input Tax Credit of the GST already paid by that dealer.
So it will not lead to tax on tax
So it will not lead to tax on tax
sorry sir..it means the same good if passed on from one hand to another without adding any other stuff ( the only value added is profit) .. the same % of tax is levied at each stage doesn't it mean it is taxed several times .18% on same good several times. sorry I couldn't clearly understand
With reference to the above mentioned example..
B sells goods to C for 150 which were purchased by him from A for 100
Here the value addition by B is Rs 50 (150-100) that is profit only.
GST payable by B is Rs. 9 (27 - 18)
It can also be calculated as 18% of Rs. 50 i.e. GST on value addition (Profit) only.
B sells goods to C for 150 which were purchased by him from A for 100
Here the value addition by B is Rs 50 (150-100) that is profit only.
GST payable by B is Rs. 9 (27 - 18)
It can also be calculated as 18% of Rs. 50 i.e. GST on value addition (Profit) only.
thank u so much.. I understand
If we take the service from another state and the person is unregistered then we have deposit reverse charge on service..what would it be CSGT / SGST... Because interstate is not allowed for unregistered Dealer...But we did now what to do??
So how can we deposit reverse charge as IGST
Recent Threads
- Form 26QB – Section 194-IA: TDS on Full Cons
- Indexation Benefit available or not on Calculation
- Documents for return exhibition material
- Can I set off equity losses(both short term loss a
- Input tax credit on rent to rent
- Family Pension Army
- Waste Management services
- Seeking Clarity: New Transport Allowance Limits (D
- Query regarding Consolidated Gift Deed for Bank Tr
- TDS u/s194IB - Joint Ownership
Related Threads
CAclubindia
