1. what if we sell inventory in undercost is their necessary for reverse of ITC.
2. Effect of it in IT and GST
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Sale of goods in Undercost
Replies (3)
Dear Hitesh Rawal,
In GST Act, mentioned some valuation rules, according to these rules you can not sale goods below cost. for your reference one valuation rule mentioned.
| Where the value of a supply of goods or services or both is not determinable by any of the preceding rules, the value shall be one hundred and ten percent of the cost of production or manufacture or cost of acquisition of such goods or cost of provision of such services. |
So, as per gst provision you can not sale goods below cost. If you do so rectify that while filling of GSTR-9, Calculate Value of Supplied goods as per valuation rules and pay additional liability raised due to under valued.
Thanks & Regards
Durgesh Vashisth
9899812287
What if i am dealing in product which increase and decrease as per market and rate changes day by day and sometimes to keep customer relationship it is sold at the market rate lower than purchase rate.
Mr. Hitesh Rawal, As per provision you cannot sale below cost. There is some logical reason behind that. If you want to discuss call me on 9899812287.
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