is GST is profit or loss for traders if its profit how if it's loss how
68 Replies
NITIN MANGLA
(ACCOUNTANT)
(278 Points)
Replied 02 October 2017
profit and loss not decide by gst. its decide your balance sheet
CA Rashmi Gandhi
(Chartered Accountant)
(86500 Points)
Replied 02 October 2017
Everything depends on your rate , profit
g mahesh Mundra
(Business and tax consultant)
(3299 Points)
Replied 02 October 2017
my question was if I am more than 75lakh turnover category GST will affect my profit ratio or not
CA Rashmi Gandhi
(Chartered Accountant)
(86500 Points)
Replied 02 October 2017
Everything depends on your GST rate, profit margin, area , market environment, existing stock etc....
anyone has to understand you business nature to reply yo your query.
anyone has to understand you business nature to reply yo your query.
g mahesh Mundra
(Business and tax consultant)
(3299 Points)
Replied 02 October 2017
for example in previous vat regime I sold my goods @ 10% profit in GST if I sold at same margin whether amount of profit will be same or less
CA Rashmi Gandhi
(Chartered Accountant)
(86500 Points)
Replied 02 October 2017
What is tax rate in earlier law & whats now....
g mahesh Mundra
(Business and tax consultant)
(3299 Points)
Replied 02 October 2017
in vat 14.5% now 28% in GST
CA Rashmi Gandhi
(Chartered Accountant)
(86500 Points)
Replied 02 October 2017
And is there any changes in purchase price of product
Mahesh Shaha
(303 Points)
Replied 02 October 2017
There will no effect on profit ratio. If your cost price decrease before Tax, you can add your profit as desire by you and wise versa. If you are paying GST on your purchases, you will collect GST by your customer, and after availing ITC of your purchases, you have to differencial Tax amount. Then how the question of profit or loss arises?
NITIN MANGLA
(ACCOUNTANT)
(278 Points)
Replied 02 October 2017
i agree with you rashmi ji but after gst applicable i dont think so any change on his profit only tax rate change and this rate change for everyone his business profit depends on his purchase or sale and exp.
g mahesh Mundra
(Business and tax consultant)
(3299 Points)
Replied 02 October 2017
surely it's loss to me for example before'GST I sold one product @ 10% on MRP of rs 100 for that I have collected 14.5% vat
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