How Will GST Work For Me

[King Dranzer]

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 I add GST again to final product which makes it 30,600.

AI Summary

GST on PC Assembly: Claim Input Credit to Offset Tax on Sales; Different Rates for Intra- and Inter-State Supplies. An individual planning to start a PC assembly business inquired about the application of Goods and Services Tax (GST). They asked whether GST would be applied twice-once when purchasing components from a distributor and again when selling the assembled PCs. A respondent clarified that the business can claim credit for the GST paid on components, which can be used to offset GST liabilities on sales. For intra-state supplies, CGST and SGST of 9% each apply, while inter-state supplies incur an 18% IGST. The net GST payable is on the value addition, with credits available for previously paid GST.