as per section 15 of cgst act" invoice value is nothing but transaction value for the purpose of gst , both supplier and recepient should not be related.
so if we sale goods at loss at our own discretion due to some competition. will the govt asks us that y u have sold at loss....?
8 Replies
CA Haritha Komma
(Chartered Accountant)
(1147 Points)
Replied 13 May 2020
No, the government cant say such way.. if your customer is a unrelated party..
No where in the GST law says that Selling price should always be more than Cost price..
Even if questioned, you may justify by showing few sale orders with other customers where SP < CP at same point of time..
Dhana Sai
(244 Points)
Replied 13 May 2020
Thank u sir.
and is there are any caselaws which says that fixed profit peecentage is to be maintained..
and is there are any caselaws which says that fixed profit peecentage is to be maintained..
Piali Roy Chowdhury
(605 Points)
Replied 13 May 2020
There is no Provision under GST Law regarding this matter. You can sell goods even at "Loss". Only be sure that the Invoice is issued timely and in a proper manner as prescribed under Section 31 of the CGST Act 2017 and breakup of GST should be indicated.
POOJA AGGARWAL
(director)
(99 Points)
Replied 13 May 2020
On Sale of Capital goods, section 18(6) provides
[6] In case of supply of capital goods or plant and machinery, on which input tax credit has been taken, the registered person shall pay an amount equal to the input tax credit taken on the said capital goods or plant and machinery reduced by such percentage points as may be prescribed or the tax on the transaction value of such capital goods or plant and machinery determined under Section 15, whichever is higher
but no such provision relating to goods .
[6] In case of supply of capital goods or plant and machinery, on which input tax credit has been taken, the registered person shall pay an amount equal to the input tax credit taken on the said capital goods or plant and machinery reduced by such percentage points as may be prescribed or the tax on the transaction value of such capital goods or plant and machinery determined under Section 15, whichever is higher
but no such provision relating to goods .
Pioneer Proffessionals
(23 Points)
Replied 13 May 2020
Penetration of market (competition) should be considered as extra consideration.(Fiat India Ltd case).
Department can consider it as underbilling, so to my mind it is better to pay GST at least on cost.
Department can consider it as underbilling, so to my mind it is better to pay GST at least on cost.
CA Altamush Zafar
(GST Consultant)
(15986 Points)
Replied 14 May 2020
The case law was decided by the honourable supreme court and pertains to excise time period. The ruling was not overruled by the government and it was merely rendered ineffective by changing the law itself. The judgement is still alive and applicable even in GST era.
Very apt mention by Pioneer Proffessionals
Recent Topics
- About mismatch of GSTR-2A and GSTR-3B
- New Excel-Based Utility
- Tax slabs mentioned in budget of feb2025
- Https://www.facebook.com/nutragreenfarmscbdgummies
- Balance Sheet FORMAT AS PROP
- Tds challan -ITNS 281 validity period
- Salary Taxable Perquisite – Sale of Asset an
- ITC claim rules
- AUTOMATED FILLING NEFT / RTGS FORM EXCEL UTILITY (
- GSTR1 filing export of service-HSN summary
Related Threads
Trending Online Classes
-
Certification Course on GSTR-3B Reconciliation with GSTR-2B through Chat GPT
CA Deepak Gupta26 April 2025
CAclubindia
