GST
It is observed GST is charged by shopkeepers above the MRP. The Government should make it clear that GST will be charged at the starting point of manufacturing & not on subsequent levels. Government should take stern actions if GST is charged on subsequent levels. more
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To whom we should contact if this type of incidents accure? Is there any Govt.machiner to check? more
Sep 22
Dear Darshan GST is charged on every transfer of right to the extent of profit.For example if manufacturer sells at Rs.100 and GST is 18% then his rate will be Rs.118.The dealer takes a margin of 5% then his price will be 105,then GST is 18.90 total 123.90-18= 105.90. That means the GST goes up by 0.90 which is 18% of Rs.5(profit) more
Sep 22
National Anti-Profiteering
Authority in GST, will monitor the compliance of anti-profiteering clause in GST:
http://www.cbec.gov.in/resources//htdocs-cbec/gst/AntiprofiteeringWebVersion.pdf more
Authority in GST, will monitor the compliance of anti-profiteering clause in GST:
http://www.cbec.gov.in/resources//htdocs-cbec/gst/AntiprofiteeringWebVersion.pdf more
Sep 22
The 'anti-profiteering' clause in GST law clearly bans the taking of GST suffered on your purchase as a 'cost' , as you are going to get it back. For example if A buys a product for Rs 100+2 for frieght+18 as GST, his cost is Rs 100+2=Rs102, and not Rs 100+2+18= Rs120. On his cost of Rs 102, say he adds a profit of say 10% or say Rs 10, his SP will be Rs 112. He bills it at Rs 112 + 18% GST= Rs112+20.16=Rs 132.16.
GST paid by A will be Rs 20.16-Rs 18= Rs 2.16 only.
If B buys it at Rs 132.16, his cost will be only Rs 112, as the GST of Rs 20.16 he had paid will come back to him . Say he adds a profit of Rs 10. Then his selling price will be Rs (112+10)+ 18 % GST= 122+ 21.96=Rs 143.97. B is prohibited from taking his cost at Rs 132.16 ( as per his purchase bill) under the 'anti-profiteering' clause. The GST paid by B will be Rs 21.96-20.16=Rs 1.80 only.
As all bill details are uploaded, undue profiteering by any one can easily be found out and he may be prosecuted. more
GST paid by A will be Rs 20.16-Rs 18= Rs 2.16 only.
If B buys it at Rs 132.16, his cost will be only Rs 112, as the GST of Rs 20.16 he had paid will come back to him . Say he adds a profit of Rs 10. Then his selling price will be Rs (112+10)+ 18 % GST= 122+ 21.96=Rs 143.97. B is prohibited from taking his cost at Rs 132.16 ( as per his purchase bill) under the 'anti-profiteering' clause. The GST paid by B will be Rs 21.96-20.16=Rs 1.80 only.
As all bill details are uploaded, undue profiteering by any one can easily be found out and he may be prosecuted. more
Sep 22
Your calculation is the right way but its noticed that people compute it differently like, Rs 100 and GST 18% total paid 118/- profit Rs. 7 so selling price is 118+7 = 125 and then add GST 18% ... if this system goes on they'll certainly exceed MRP. Not many are aware how to compute GST.. this is leading to the confusion and pricing above MRP is reported at many places. This has also increased the product price after GST causing issues to common man. more
Sep 22
