11-12-2010, 09:13 PM
Hi guys,
gst on consumer products is ultimately borne by end user.
So it output tax for a product comes to 10 Rs., the retailer sells at his price plus gst that is say, 100 + 10 = 110.
The consumer pays him 110 so the retailer in essence gets his output tax of 10 from the users, and that too is paid after adjustment of input tax.
Am I right?
I was actually wondering why do they cry if rates are increased? They don't pay anything from their pockets. What do u think?
Thanks
gst on consumer products is ultimately borne by end user.
So it output tax for a product comes to 10 Rs., the retailer sells at his price plus gst that is say, 100 + 10 = 110.
The consumer pays him 110 so the retailer in essence gets his output tax of 10 from the users, and that too is paid after adjustment of input tax.
Am I right?
I was actually wondering why do they cry if rates are increased? They don't pay anything from their pockets. What do u think?
Thanks
