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
View answer
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
View answer
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