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How to decrease output tax payable
suppose A is a machine manufacturer he sells machine for 100000rs and tax is 18% i.e. 18000rs .....his purchase is 50000rs itc is 18% i.e. 9000rs how can he save his tax in gst except buying more purchase bills ?
Replies (3)
Quick Summary
Output liability is 9000 u have to pay this
You are required to Pay GST output liability after set off of Input tax credit, which you have received from Suppliers of Machinery..
In your case you have to pay GST of RS. 9,000/-
Note : GST paid by you...i.e 9,000 at time of Purchase to Suppliers + 9,000 to Government= total 18,000....it's not your cost, because you already collected that 18,000 from customer/Buyer....So, your cost is Nil.
In your case you have to pay GST of RS. 9,000/-
Note : GST paid by you...i.e 9,000 at time of Purchase to Suppliers + 9,000 to Government= total 18,000....it's not your cost, because you already collected that 18,000 from customer/Buyer....So, your cost is Nil.
He can save tax by reducing sale price. :)
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