Is GST To charge on Profit or on value charged?

Is GST To charge on Profit or on value charged ? eg:-Item rate :-Rs 50 and Trader sold product in Let\’s say Rs 70 than trader have to pay tax on Rs 70,say rate is 10*%?

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2 Answer(s)

GST will be levied and collected on the transaction value I.e. value charge as mentioned by u 70. Though net liability to deposit will calculated after reducing ITC available with u. GST is destination based value added tax.

Answered on June 1, 2017.
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GST to be charged on Value I.e sale price in your case Rs 70 GST output laib Rs 7 (10% rate) But you already paid GST on Rs 50 I.e 5 Rs as GST Now Net Laib is Rs 7-5= 2 I.e GST ON YOUR PROFIT MARGIN.

Answered on June 1, 2017.
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Your Answer

Gen GST