Burden of GST liability

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Burden of GST liability 2017-04-17T11:29:10+00:00

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  • CA RISHABH PATWARICA RISHABH PATWARI
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    CA tips : GST (One nation one Tax)

    GST liability

    Who shall be liable to pay tax under GST regime?

    For simple understanding spplies can be classified in following four categories.

    1. Registered person sold supply to another registerd person : GST shall be payable by the seller registered person (supplier)

    2. Registered person sold supply to unregistered person : GST shall be payable by seller registered person (Supplier)

    3. Unregistered person sold supply to registered person : in this case buyer registered person (receiver) shall pay tax ( this case is covered under reverse charge)

    4. Unregistered person sold supply to another unregistered person : No tax liability

    Hence now Registered person will be more interested to sell/ buy supply from another registered person only, this is because if he deals with unregistered person then burden of GST liability shall shift on him.

    Hence it not so happy situation for Unregistered Dealers once GST is implemented.
    Thank you

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    GST liability is the amount which is to be paid to government and is the difference between input and output GST. For example

    For a purchase of Rs. 80,000/- and a sale of Rs. 1,00,000/- with CGST is 10% and SGCT is 8% than the GST payable is Rs. 3600/-

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