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*%?
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.
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.