Stock in hand - lower vat purchase vs higher gst rate sale

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Hi All,

Can anyone please help clarify on what will happen to stocks with a trader that were purchased at a lower VAT rate for eg at 14% vs the new GST rate applicable would be 28%. Who will have to bear the incidence of higher tax. Are there any other provisions one should be aware of transition goods ?

Replies (1)

If goods sold are MRP based then business entity will have to bear the higher GST rate difference  other wise difference is charged from the ultimate consumer.

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