What is more beneficial?

144 views 4 replies

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?

Replies (4)
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

Sir gst cannot be charged above mrp rs1000

rs1000 selling price is inclusive gst 18 percent 

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
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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