GST LIABILITY OF DISTRIBUTOR AND RETAILER ON RECHARGE/ E TOP SALE

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....ST LIABILITY OF DISTRIBUTOR AND RETAILER ON RECHARGE/ E TOP SALE<br> Query (Issue) Started By: - lalit kumar Dated:- 2-7-2017 Last Reply Date:- 16-7-2017 Goods and Services Tax - GST<br>Got 3 Replies<br>GST<br>PLEASE ADVICE ON GST TAX LIABILITY ON ETOP OR RECHARGE SALE THROUGH A DISTRIBUTOR AND RETAILER. REGARDS LALIT Reply By KASTURI SETHI: The Reply: Dear Querist, The undermentioned will b....

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....e helpful:- For example : A manufacturer supplies the goods to wholesale dealer and wholesale dealer supplies (sells) the goods to retailer and retailer supplies (sells) the goods to the ultimate consumer.A supplier (manufacturer) charges &#8377; 120/- (Rs.100/- + Tax &#8377; 20/-) from wholesale dealer and wholesale dealer avails the credit of tax of &#8377; 20/-and his value addition is &#8377;....

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.... 10/-and he charges + tax @20% on &#8377; 110/- i.e. &#8377; 22.Thus he charges &#8377; 132/- from the retailer. The retailer takes credit of &#8377; 22/- and his value addition is &#8377; 20/-.He would charge tax @20% on &#8377; 130/-(110+20) which works out to &#8377; 26/-(GST). Thus final consumer will pay &#8377; 136/- Thus tax has been charged at each stage on value addition only which avoids....

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.... cascading effect i.e. without double taxation. Reply By MARIAPPAN GOVINDARAJAN: The Reply: GST liability is there if you cross the threshold limit of &#8377; 20 lakhs. Reply By Ramesh Kothari: The Reply: Tax applicable at every stage till reach to consumer no double taxation<br> Discussion Forum - Knowledge Sharing ....