Yesterday I went to the MDF Plywood Store to buy 8 MDF sheets. The transaction was done in Cash.
I asked the sq. ft. price of a sheet from the shopkeeper.
He told me that it was INR 37 sq. ft exclusive of GST and I had 2 options, either I could make a registered purchase or I could make an unregistered purchase. If I choose a registered purchase option then I have to pay 9% GST on the Taxable Amount and on the Invoice they will show it as an 18% tax rate.
I make a registered purchase.
Upon hearing his 9% and 18% GST statements, I felt something was fishy. Because the tax rate on MDF is 18% and Ideally, he was supposed to collect 18% GST from me but instead he collected 9% GST.
Breakup of Unregistered Purchase INR 9,472 amount:-
Area of each sheet = 8 feet X 4 feet = 32 sq. feet
Cost of 8 sheets = 32 sq. ft X 8 sheets X 37 INR per sq. ft. => INR 9,472
.
Breakup of Registered Purchase INR 10,324.48 Amount:-
Area of each sheet = 8 feet X 4 feet = 32 sq. feet
Cost of 8 sheets = 32 sq. ft X 8 sheets X 37 INR per sq. ft. => INR 9,472
Taxable Amount = 9472
9% GST = 852.48
Total = INR 10,324.48
Breakup of Registered purchase INR 10,324.48 amount showed on the GST Bill:-
Taxable Amount = 8,749.56
18% GST = 1,574.92
Total = INR 10,324.48
I want to know why he did underbilling.
What do you think, is this transaction correct or against GST Law?
CAclubindia
