I am posting this query on behalf of my client ,He is dealing in Herbal Medicine in which he has paid VAT @ 5% before 30th june ,now the Applicable rate for his business is 12% ,if want to sell this medicine he has to charged 12% gst which retailers are not willing to Pay and suppose if retailer puchases then they want same profit margin but MRP is fixed so they can not charged beyond MRP. in that case my client is offering Special discount of 7% ,so that he may get Order....Now he is saying that because of GST he has to share his profit .
My conclusion is that if any person want to sell old stock when rate is increased and facing same problem he has to offer Special discount from his pocket......GST Experts please help and i have many more interesting query like this which create confusion in market.
CAclubindia
