GST LIABILITY OF DISTRIBUTOR AND RETAILER ON RECHARGE/ E TOP SALE, Goods and Services Tax - GST

[lalit kumar]

PLEASE ADVICE ON GST TAX LIABILITY ON ETOP OR RECHARGE SALE THROUGH A DISTRIBUTOR AND RETAILER.

REGARDS

LALIT

Posts / Replies

[KASTURI SETHI]

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.

[MARIAPPAN GOVINDARAJAN]

GST liability is there if you cross the threshold limit of ₹ 20 lakhs.

[Ramesh Kothari]

Tax applicable at every stage till reach to consumer no double taxation