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gst. levying of tax by whom

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140 Points Posted on 29 June 2017
when there is transfer of good say almond from one person to another from manufacture to big wholesaler and small wholesaler and retailer then to shopkeeper and to customer and the tax rate on it is 18% who will levy this 18% .. if ever person levy then won't it be tax on tax
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On 29 June 2017 at 15:48 Report
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Manager-Accounts & GST Consultant
5124 Points Posted on 29 June 2017

No, the seller (A) charge the tax from buyer(B) and pay to Govt

The buyer (B) will charge from consumer (C) and deduct the tax paid to (A) from it and pay balance to govt. This is called taking input credit. The tax on only value addition is paid at each stage.

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On 29 June 2017 at 16:12
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140 Points Posted on 29 June 2017
sir when the tax is 18%under gst for a good and A impose 18% for the good what amount of % do B impose ...sorry I couldn't understand explain with an example
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On 29 June 2017 at 16:46
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140 Points Posted on 29 June 2017
thank u why don't u explain with an example
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On 29 June 2017 at 16:59
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9 Points Posted on 29 June 2017
For example if A sells goods to B for Rs. 100 and A charges GST @ 18% i.e. Rs. 18 (18% of 100) and A collects 18 rs from B and he pays Rs. 18 as GST to Government.

Then B sells those goods to C for Rs. 150 and B charges GST of Rs. 27 (18% of Rs. 150) then B will pay Rs. 9 (27-18) as GST to Government.
Here, 18 rupees is the INPUT TAX CREDIT for B.
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On 29 June 2017 at 17:14
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140 Points Posted on 29 June 2017
thank sir
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On 29 June 2017 at 17:21
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140 Points Posted on 29 June 2017
but sir if same almond is passed on from person A manufacture to person B wholesaler and the same almond without any change is passed on from B to retailer C and without any change to shopkeeper D .. why should 18% tax be charged for same good again and again. won't it be tax on tax ..only when persons r gonna add profit and sell
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On 29 June 2017 at 17:28
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9 Points Posted on 29 June 2017
The GST will be charged on the amount value addition at that stage (value addition also includes profit) as the registered dealer will get the Input Tax Credit of the GST already paid by that dealer.

So it will not lead to tax on tax
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On 29 June 2017 at 18:42
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140 Points Posted on 29 June 2017
sorry sir..it means the same good if passed on from one hand to another without adding any other stuff ( the only value added is profit) .. the same % of tax is levied at each stage doesn't it mean it is taxed several times .18% on same good several times. sorry I couldn't clearly understand
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On 29 June 2017 at 18:55
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9 Points Posted on 29 June 2017
With reference to the above mentioned example..

B sells goods to C for 150 which were purchased by him from A for 100
Here the value addition by B is Rs 50 (150-100) that is profit only.

GST payable by B is Rs. 9 (27 - 18)
It can also be calculated as 18% of Rs. 50 i.e. GST on value addition (Profit) only.
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On 29 June 2017 at 20:00
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140 Points Posted on 29 June 2017
thank u so much.. I understand
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On 29 June 2017 at 20:04
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AM
27 Points Posted on 17 August 2017
If we take the service from another state and the person is unregistered then we have deposit reverse charge on service..what would it be CSGT / SGST... Because interstate is not allowed for unregistered Dealer...But we did now what to do??
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On 17 August 2017 at 22:44
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AM
27 Points Posted on 17 August 2017
So how can we deposit reverse charge as IGST
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On 17 August 2017 at 22:45


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