Dear Sir,
When there is a changes in the GST tax rate as per recommendation of GST council , how the differences in tax amount will be treated by business entity?
Example:
1. M/s. ABC limited purchased Lithium Iron Batteries by paying the input tax rate of 28%.
2. The goods are available with stock.
3. Before liquidation of these stocks, now the tax rate has been reduced to 12%.
4. After this tax rate changes, that company can sell these goods with newly reduced tax rate.
5. How this situation has to be treated by this company?
Kindly explain.
The New tax rate is applicable when it's confirmed. No more effects in the books like You can avail the ITC as per Your purchase bills...
No more changes in the basic values...
Finally You ll get extra benefits like ITC using 6%
CAclubindia
