CGST Act Section 32 (1) says
A person who is not a registered person shall not collect in respect of any
supply of goods or services or both any amount by way of tax under this Act.
All Medicines are MRP (Inclusive of Tax ), Means they are collecting tax indirectly from Consumer. What is exact meaning of Above Subsection.
if they collect the tax then how they paid tax to department?
Dear bhavisha in mrp based item tax would always be there in the goods.seller will not show the tax separately in the sale invoice. not charged separately will not entitle him to pay to govt anything. further he will not take not ITC. so the govt will get tax less but before last stage.
so it means retailer when take the goods from wholesaler , he has already paid the tax , but due to he is not registered under this act as his turnover under exampted limit , they dont have to maintain any books , & tax which they paid to wholesaler they collect it from buyer/customer
yes bhavisha. u are rigght. & govt get appropriate amount of tax
If he is below 20 Lack turnover then no liability of GST for him, but.... above will come under Composition scheme then he has to pay 1% to 3 % of turnover as GST depend on Trade. and more thing in this scheme he can not take credit or GST he paid to his supplier.
As a retailer of goods bearing MRP price. Do I have to bifurcate the GST from the total in my retail invoices? The price is MRP so automatically inclusive of all taxes (now only GST)
Is there any rule which says so that its' mandatory? or is it just done from a customer information point of view?
CAclubindia
