I buy goods from GST registered dealers for 100.00 after paying GST 18.00 and want to sell goods to a government department will the formula of be ok?

I am under GST composition scheme. I buy goods from GST registered dealers for 100.00 after paying gst 18.00 and want to sell goods to a government department will the formula of 100 + 18 (costing) + 11.80 (profit)= 129.80 (billing to end user) be ok?

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3 Answer(s)

You will also need to add output GST liability I.e. 129.80*18% = 23.36. final price =153.16. please double check I’m not 100% sure.

Answered on July 3, 2017.
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Under composition scheme you are not eligible to take ITC. you can add out put tax at composition scheme rates i.e 1%, 2%, or 5% as applicable.

Answered on July 3, 2017.
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Yes it is Ok.

Answered on July 3, 2017.
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Your Answer

Gen GST