Dear sir,
A Trader dealing in supporting activity in looms (weaving a cloth ) ,
He purchases raw threads from a supplier who charges GST at some rate .,
The trader who purchases it paying price cum GST and do the job and further sells that to customer but doesnt charge GST , since the trader is not in the obligation to Levy tax ,
Can the trader claim Input GST credit on purchase and take refund ??
Kindly clarify ..🙂
Menu
GST input Credit refund.
Replies (2)
the trader cannot claim input tax credit as he is not a registered dealer. Only people who have registered themselves in gst can take the benefit of input tax credit
Thank you sir,
But , The trader is registered under GST ,And he has a GSTIN .
However his turnover is below the prescribed limit and to the trader , his purchase is added with tax resulting in higher cost of purchase and cannot pass on that, to the buyer . Consequently he has to charge to the customer a higher price .. that results ineffecient pooling of customers .
But , The trader is registered under GST ,And he has a GSTIN .
However his turnover is below the prescribed limit and to the trader , his purchase is added with tax resulting in higher cost of purchase and cannot pass on that, to the buyer . Consequently he has to charge to the customer a higher price .. that results ineffecient pooling of customers .
Recent Topic
- Input tax credit under igst under insurance compan
- ITR Form to be used
- CGAS account Holder Deceased
- ITR form suggestion
- Post office KVP income.
- Free GST invoice tool I built for my practice R
- Clarification on Gratuity Exemption under Section
- GOODS AND SERVICE TAX - GSTR 1
- Correct ITR form
- Clarification required on Section 393 & Report
Related Topics
CAclubindia
