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GST LIABILITY OF DISTRIBUTOR AND RETAILER ON RECHARGE/ E TOP SALE, Goods and Services Tax - GST |
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GST LIABILITY OF DISTRIBUTOR AND RETAILER ON RECHARGE/ E TOP SALE |
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PLEASE ADVICE ON GST TAX LIABILITY ON ETOP OR RECHARGE SALE THROUGH A DISTRIBUTOR AND RETAILER. REGARDS LALIT Posts / Replies Showing Replies 1 to 3 of 3 Records Page: 1
Dear Querist, The undermentioned will be helpful:- For example : A manufacturer supplies the goods to wholesale dealer and wholesale dealer supplies (sells) the goods to retailer and retailer supplies (sells) the goods to the ultimate consumer.A supplier (manufacturer) charges ₹ 120/- (Rs.100/- + Tax ₹ 20/-) from wholesale dealer and wholesale dealer avails the credit of tax of ₹ 20/-and his value addition is ₹ 10/-and he charges + tax @20% on ₹ 110/- i.e. ₹ 22.Thus he charges ₹ 132/- from the retailer. The retailer takes credit of ₹ 22/- and his value addition is ₹ 20/-.He would charge tax @20% on ₹ 130/-(110+20) which works out to ₹ 26/-(GST). Thus final consumer will pay ₹ 136/- Thus tax has been charged at each stage on value addition only which avoids cascading effect i.e. without double taxation.
GST liability is there if you cross the threshold limit of ₹ 20 lakhs.
Tax applicable at every stage till reach to consumer no double taxation
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