COMPOSITION SCHEME BENEFITS UNDER GST

Posted Date : 27-May-2017 , 03:30:22 pm | Posted By CASANSAAR print

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If Person not in Composition Dealer

Manufacturer

Trader 1

Trader 2

Trader 3

Cost

100

110

121

Profit

Sale Price

100

110

121

133

GST

19.8

21.78

23.94

TOTAL SALE PRICE

118

129.8

142.78

156.94

GST 18%

18%

If Person in Composition Dealer

Manufacturer

Trader 1

Trader 2

Trader 3

Cost

100

129.8

142.208

Profit

SALE PRICE

100

110

140.8

154.208

GST

19.8

1.408

1.54208

Total Sale Price

118

129.8

142.208

155.7501

Goods will be cheaper in case of composition of goods if same amount of profit is being kept in chain

As per above system, being quantum of profit earned is same both in composition and Normal Dealer

Analysis, if you are in chain & in position of trader No. 2 and so on, goods can be sold lower than Normal dealer. Per Piece/ Kg Goods cheaper of Composition dealer

By CA Yash Bhugra

If Person not in Composition Dealer	Manufacturer	Trader 1	Trader 2	Trader 3
Cost	90	100	110	121
Profit	10	10	11	12
Sale Price	100	110	121	133
GST	18	19.8	21.78	23.94
TOTAL SALE PRICE	118	129.8	142.78	156.94

	GST 18%	18%	1%	1%
If Person in Composition Dealer	Manufacturer	Trader 1	Trader 2	Trader 3
Cost	90	100	129.8	142.208
Profit	10	10	11	12
SALE PRICE	100	110	140.8	154.208
GST	18	19.8	1.408	1.54208
Total Sale Price	118	129.8	142.208	155.7501

Goods will be cheaper in case of composition of goods if same amount of profit is being kept in chain


As per above system, being quantum of profit earned is same both in composition and Normal Dealer


Analysis, if you are in chain & in position of trader No. 2 and so on, goods can be sold lower than Normal dealer. Per Piece/ Kg Goods cheaper of Composition dealer



			By CA Yash Bhugra

Category : GST | Comments : 0 | Hits : 1303

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