What is more beneficial?

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24 Points Joined September 2016

Dear Experts,

                       What will be more profitable for a firm,gst regular scheme or composition,

Firm 

purchases from supplier Mrp Rs 1000 product at

Less 40 percent discount on mrp gross amount rs 600

plus gst18  rs 108

total cost of purchase rs708

if product sold by firm is  done at mrp1000 inclusive to customer 

the firm will make more profit in gst regular  scheme or in composition scheme?

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On 02 October 2020 at 17:46 Report
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Practice
3235 Points Joined August 2009
GST Regular is beneficial,
if opt for regular scheme
sale 1000
GST @ 18% 180
less: ITC 108
payable 72
if opt for composition
sale 1000
GST @ 1% 10
Plus: paid on purchase 108
paid 118
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On 02 October 2020 at 18:41
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24 Points Joined September 2016

Sir gst cannot be charged above mrp rs1000

rs1000 selling price is inclusive gst 18 percent 

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On 02 October 2020 at 18:57
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Practice
3235 Points Joined August 2009
Then also in that case in option 1 opt for regular scheme sale 847 Gst @ 18% 153 less ITC 108, GST Payable 45, in option 2 GST will be payable 118
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On 02 October 2020 at 19:01
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Tax and Business Consultant
11616 Points Joined July 2015
If you are charging MRP Rs. 1000 to your customers.( in normal as well as in Composition)

than composition is better.
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On 04 October 2020 at 11:46


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