My client has a wholesale buisness of Namkeen.
Suppose he purchase a bag of namkeen @ Rs. 1000 add gst @ 12% it comes to 1120.
Then what amount he would bill for if its profit margin is Rs. 20 per bag.
1.if it is under composition scheme.
2.Also specify when a person purchase from wholeseller under composition scheme then but a wholeseller i.e., 120 paid to their manufacturer who is in normal provision pls specify can he avail a credit of gst which not a retailor
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Billing under composition and itc
Replies (3)
Under Composition scheme
Composite dealer cannot charge GST
So Bill amount is 1000+20=1020
Composite dealer shall pay the Tax whatever applicable to them
And
Composite dealer cannot take ITC
| Originally posted by : CA Sathish Reddy | ||
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Under Composition scheme Composite dealer cannot charge GST So Bill amount is 1000+20=1020 Composite dealer shall pay the Tax whatever applicable to them And Composite dealer cannot take ITC |
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In my view You are wrong reply....!
How is it...? He purchased Rs. 1120 and he ll be sell his goods Rs. 1020... Then where is he get that Rs. 100....
He following your said way then He can closed the shop permamnetly....
Am I right or wrong....?
As composition scheme person can not avail ITC paid on purchases. So amount paid Rs. 1000+120 = 1120 will be his actual cost. For margin of Rs. 20 he has to issue cash memo or normal invoice (not tax invoice) of Rs. 1140 and on that he has to pay GST under compisition scheme.
Question 2nd is not clear to me please elaborate a little.
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