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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


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


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


Sales Amount Including Taxes=70000

GST Rate=5%

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



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


Balance GST payable=3333-700=2633


  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 .