GST RATE ON CARTON BOXES

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hr
55 Points Joined May 2018
Abc limited buy MDF board on which tax rate is 18%
i make boxes from this material and sell at 12% (in 53rd meeting rate on carton boxes changed 18% to 12% )

is there any problem in this scenario
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On 03 September 2024 at 17:11 Report
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Master in Accounts & high court Advocate
8991 Points Joined December 2011

ABC Limited buys MDF boards at an 18% tax rate and manufactures carton boxes, which are sold at a 12% tax rate. Since the tax rate on carton boxes was reduced from 18% to 12% in the 53rd meeting, there shouldn't be any issues. However, consider the following: 1. _Input credit_: ABC Limited may have paid 18% tax on the MDF boards. If the tax rate on the finished goods (carton boxes) is now 12%, you might need to reverse the input credit or claim a refund for the excess tax paid. 2. _Tax compliance_: Ensure that ABC Limited complies with the tax regulations and files the necessary returns to reflect the changed tax rate. 3. _Documentation_: Maintain proper documentation, such as invoices and receipts, to support the tax rates applied to both the MDF boards and the carton boxes.

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On 04 September 2024 at 09:44


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