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

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Mukesh

Paid Assistant

27 Points Joined December 2010

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)

Shubham Gupta

Business Consultants

2077 Points Joined February 2014

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.