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Please clarify

199 views 4 replies

BHAGYARAJU

6 Points Posted on 27 September 2018

Swathi silks purchased
saree worth. Rs. 1200/- Rate of tax 12%

Sold the same Rs. 1200
Discount. Rs. 300
Net price. Rs. 900
Rate of tax. @ 5% below 1000/-

Clarify which rate of tax is applicable if discount is allowed

Most of the dealers are issued discount to evaded the higher rate of tax i. e.
Aboue 1000/- @ 12%
Below. 1000/- @ 5%

Replies (4)

Rohit Tibrewal

Student

3193 Points Posted on 27 September 2018

As net price is 900 rate is 5%, as per my suggestion wait for the further views

for these kind of situatiions where GST rate depends on some slab rates, the declared price is taken into consideration. For example, in case of Hotels the teriff rate (Declared by Hotels) is considered for applicability of GST rate irrespective of discounts offered. Hence, the rate will fixed on the basis of declared rate but will be charged on after discount value.

BHAGYARAJU

6 Points Posted on 27 September 2018

Please explain the about doubt as per the rule position because the example is not suitable because the hotels are providing accommodation along with food but in this case only buying and selling the same product without any changes Hence the above example is not suitable

Harihar Mandal

504 Points Posted on 27 September 2018

the example was just given to explain the situation of GST rate on the basis of slab rate. To avoid the loss of revenue to the Government and evasion of tax, GST rate is calculated on the basis of Gross value and not on the value of after discount.