What will i have to do now. Will i suffer a loss? If present rate of vat 6% & revised gst rate 28%.
I have lots of stock in local purchase. The present rate of vat is 6%. I am a plywood whole seller. The revised gst rate is 28%. What will I have to do now. Will I suffer a loss.
You may suffer loss due to differential tax in case of MRP based products or where price can not be increased due to market conditions or competition. In case you recover the differential tax, the ultimate price to customer would increase. at the most, you can take credit of 60 percent of CGST you are going to charge on your sale invoice under GST in next six Upto December 2017…any stock not sold by then, no credit is eligible. One suggestion you can check with the manufacturer to pass on credit of CVD under CTD or compensate for losses.