VAT ITC in GST

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uday tirthkar (Querist)

22 May 2017 I am trading in fertilisers and insecticides. both items are lavied 6% vat in Maharashtra, and in GST fertilisers 12% and insecticides 18%. We will get ITC of 6% only and paying GST 12 & 18% respectively. There is loss to us of 6% in fertilisers and 12% in insecticides. is there any solution for my problem?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

22 May 2017 You are referring to the stock held on the date of implementation of GST. In such a case pass on the credit of 6% only to the customer you will not loose any thing.

uday tirthkar

uday tirthkar (Querist)

22 May 2017 Fertilizers are MRP binding and only 2% margin on MRP. stock held on implementation of GST is inclusive of 6% vat. when we sale this stock after GST implementation, how can we sale these fertilisers more than MRP?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

22 May 2017 You have to sell it more than MRP being the old stock held. You need not bear higher GST you have to pass it on to consumer it will be allowed under such circumstances.

uday tirthkar

uday tirthkar (Querist)

22 May 2017 Thank you sir.

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