Composition Scheme in GST

GST - Goods and Services Tax, India
GST Computation & Accounting

Q1 Goods Purchased from A LTD

 PARTICULARS QTY RATE AMT PLASTIC (In Kg) 200 5 1000 CGST 2.5% 25 SGST 2.5% 25 TOTAL 1050

Suppose Company Wants 200 Kg to Sell it to B LTD at Rs 7 per kg

Make Sales Bill and Tax Computation Assuming he is a Normal Dealer

He is a Composition Dealer and Tax Rate is 1%

In Which Option less GST is payable

In Which Option Company earns more Profit

Which option will buyer prefer if buyer is not Registered in GST?

Which option will buyer prefer if buyer is Registered in GST?

-a-

In this case,Purchase Price excluding taxes is Purchase Price

 PARTICULARS Purchase Price Normal Dealer 1400 Composition Dealer 1400

Hence,it makes no difference to Buyer

-ea-

Q 2 Goods Purchased from A LTD

 PARTICULARS QTY RATE AMT PLASTIC (In Kg) 200 5 1000 CGST 2.5% 25 SGST 2.5% 25 TOTAL 1050

Suppose Company Wants 200 Kg to Sell it to B LTD at Rs 300 Profit

Make Sales Bill and Tax Computation Assuming he is a Normal Dealer

He is a Composition Dealer and Tax Rate is 1%

 Particular Amount Actual Purchase Price 1050.00 Profit Required 300.00 Total Price 1350.00 GST Amt (1/99) 13.64 Total Sales Price 1363.64

In Which Option less GST is payable

In Which Option Company earns more Profit

Which Option Will buyer prefer if buyer is not Registered in GST?

Which Option Will buyer prefer if buyer is Registered in GST?

Q 3 Goods Purchased from A LTD

 PARTICULARS QTY RATE AMT PLASTIC (In Kg) 200 5 1000 CGST 2.5% 25 SGST 2.5% 25 TOTAL 1050

Suppose Company Wants 50 Kg to Sell it to B LTD at Rs 100 Profit

Make Sales Bill and Tax Computation Assuming he is a Normal Dealer

He is a Composition Dealer and Tax Rate is 1%

 Particular Amount Actual Purchase Price 262.50 Profit Required 100.00 Total Price 362.50 GST Amt (1/99) 3.66 Total Sales Price 366.16

In Which Option less GST is payable

In Which Option Company earns more Profit

Which Option Will buyer prefer if buyer is not Registered in GST?

Which Option Will buyer prefer if buyer is Registered in GST?

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