Goods and Services Tax – Started By: – King Dranzer – Dated:- 29-7-2017 Last Replied Date:- 29-7-2017 – I want to start a PC assembly business. How will GST work for me. I will have to get the components from a wholesale distributor assemble them and then sell it. In this case will the GST be applied twice once when I buy it from distributor and again when I sell it. Or will the GST that we paid to retailer be returned to us when we sale the item to consumer. Will the GST be applied at different levels or will it only be applied at single level.Lets say the price of components is 20,000 on which distributor is adding 18% GST which makes it 23,600. When I sale it should I sell it for 26,600 in which the GST I paid will be reverted or should
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our sale price say on Rs, 25000/-, your total GST liability would be ₹ 4500/- . You can pay it by debiting ₹ 3600/- from Credit account and paying balance in cash. However you cannot adjust credit of CGST against SGST and vice versa. – Reply By King Dranzer – The Reply = That 20,000 is excluding the 18%GST that distributor will be including. So the PC cost will be 23,600. – Reply By MADAN RAHEJA – The Reply = ₹ 3600/- will be available to you as a Credit for paying GST on your sale price. Hence net GST payable by you would be on the value addition, while you would charging 18% GST on your full sale price. In the aforesaid example of basic sale price of ₹ 25000/- you would be collecting basic sale price of ₹ 250
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