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Unregistered sale

04 July 2017

a buyer is unregustered and seller also unregistered in case purchaser took output tax and input tax in this case who paid tax to government ?

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35 Replies

Hitesh Sharma (n.a) (54 Points)
Replied 04 July 2017

In this case RCM is not applicable. so no one needs to pay tax

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RAJA P M ("Do the Right Thing...!!!") (128010 Points)
Replied 04 July 2017

Unregistered Person cannot supply goods/services with Taxable Invoices. So, In this case Tax is Not Involved then how to apply OUTPUT and INPUT...

1 Like

Ajay Prajapati (512 Points)
Replied 04 July 2017

buyer (unregistered) purchased goods from registered dealer that time he pay input tax after it buyer(unregistered) sale this goods to another unregistered dealer he not able to collect output tax in this case unregistered dealer gonna loss ....pls confirm this

Hitesh Sharma (n.a) (54 Points)
Replied 04 July 2017

in that case the tax that paid by buyer(unregistered) is become part of cost of product.

RAJA P M ("Do the Right Thing...!!!") (128010 Points)
Replied 04 July 2017

Originally posted by : Ajay Prajapati
	buyer (unregistered) purchased goods from registered dealer that time he pay input tax after it buyer(unregistered) sale this goods to another unregistered dealer he not able to collect output tax in this case unregistered dealer gonna loss ....pls confirm this

In my view No more loss. Bcoz, The unregistered dealer calculate the value of the goods is following way

Purchase from Registered Dealer

Ass. Value = Rs. XXXXX

GST @ XX = Rs. XXX

Total Bill Value = Rs. XXXXX. Then the Unregistered Dealer billing to his Customer....

Purchase Bill Value = Rs. XXXXX

Add His Margin = Rs. XXX

Total = Rs. XXXXXX then how to fall in loss.

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RAJA P M ("Do the Right Thing...!!!") (128010 Points)
Replied 04 July 2017

Then better way to practice, He ll purchase from composition Dealer or Unregistered dealer

RAJA P M ("Do the Right Thing...!!!") (128010 Points)
Replied 04 July 2017

Then better way to practice, He ll purchase from composition Dealer or Unregistered dealer

Ajay Prajapati (512 Points)
Replied 04 July 2017

after it when he add his margin means he add input tax liablity also ...
ex- ass value- 50000
input tax @ 5%- 2500
total purchase value- 52500

after it he sold to unregistered - 52500
margin 10% -. 5250
selling rate ----. 57750

then this seller sold to customer means goods gonna costly .... ???

Venu Gopal (19 Points)
Replied 04 July 2017

No need to pay tax by any unregistered person and the question of Input tax credit is also not arise.

Ajay Prajapati (512 Points)
Replied 04 July 2017

means unregistered seller is able to sold goods with apply any tax ?

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RAJA P M ("Do the Right Thing...!!!") (128010 Points)
Replied 04 July 2017

Unregistered dealer can't apply tax rate

Ajay Prajapati (512 Points)
Replied 04 July 2017

there r three party
registers -–-->sold–---->unregistered----->sold----->unregistered

registered collect output tax from first unregistered then this unregistered sold item to another unregisterd dealer in this second billing first unregistered not able to collect output tax. .. means in invoice he not apply any tax. .. then it means unregistered pay output and not able to take any input he face loss if he add this in his margin it means goods gonna costly