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If vendor is not registered in GST, GST deducted will be his expense

If he is registered in GST, he can reduce the same from his tax liability

Example 1

Flipkart Sells goods to customer for Rs 100000

It charges Rs 30000 Commission and pays Balance to Vendor

What is TCS to be deposited

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Hence, the amount payable to Vendor is 70000

Flipkart will deduct 1% Commission on this 70000 i.e. Rs 700

Balance Amount it will pay to Vendor=70000-700=69300

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Suppose GST Rate on Goods is 5%. What is GST Payable by Vendor

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Sales Amount Including Taxes=70000

GST Rate=5%

Sales Amount Excluding GST=70000*100/105=66667

GST=5%*66667=3333

Total=66667+3333=70000

Output GST=3333

Input GST=0(Assumed)

GST payable=3333-0=3333

He can reduce TCS from his GST Liability and pay balance amount to Government

TCS=700

Balance GST payable=3333-700=2633

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  1. GST - Goods and Services Tax, India
  2. GST Computation & Accounting
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About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 6 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com .
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