To calculate 20% shortfall, should we consider including gst or excluding gst, because ITC not eligible so that will be considered as cost. so below given methods which method is right Method1: Including GST as Expenses GST Bill Taxable Value 10,00,000 Tax @ 18% 1,80,000 Total 11,80,000
Non GST Bill 5,00,000
Total Expenses 16,80,000
80% of the total Value 13,44,000 20% of the total Value 3,36,000
Shortfall Value 1,64,000
Method1: Excluding GST as Expenses GST Bill Taxable Value 10,00,000 Tax @ 18% 1,80,000 Total 11,80,000
Non GST Bill 5,00,000
Total Expenses 15,00,000
80% of the total Value 12,00,000 20% of the total Value 3,00,000
CAclubindia
