We have opened a plywood and hardware shop. We have obtained GST number also.
Suppose we are buying goods at Rs 100 and 18% on that. We received at 118. Now we have 10% profit.
please tell me on which price we should add profit and then Gst thereon. At 100 Rs or at 118?
If we add at 100 then selling price would be 110 plus gst or at 118 then 129 plus GST. Will we get ITC?
which is correct???
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Replies (2)
Add 10% profit on 100 and charge GST...
Now Your
Sale Rs. 110
GST Tax Rs. 20
Total - 130
And You can avail ITC Rs. 18
Pay Tax to govt for following way
Output Tax - 20
(-) Input Tax - 18
= Payable Rs. 2 to Govt
Now Your
Sale Rs. 110
GST Tax Rs. 20
Total - 130
And You can avail ITC Rs. 18
Pay Tax to govt for following way
Output Tax - 20
(-) Input Tax - 18
= Payable Rs. 2 to Govt
Sales value. 110 OPT GST 19.80
Purchase value 100 IPT GST. 18.00
So after taking IPT, your GST payable will be Rs 1.80/-
In other words pay GST on profit:
Profit is Rs10*18/100=1.80
Purchase value 100 IPT GST. 18.00
So after taking IPT, your GST payable will be Rs 1.80/-
In other words pay GST on profit:
Profit is Rs10*18/100=1.80
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