Wednesday, February 13, 2019

How do you calculate reverse GST?

How do you calculate reverse GST?

When adding 10% to the price is relatively easy (just multiply the amount by 1.1), reverse GST calculations are quite tricky:
  1. To figure out how much GST was included in the price you have to divide the price by 11 ($220/11=$20);
  2. To work out the price without GST you have to divide the amount by 1.1 ($220/1.1=$200)

Can GST paid on reverse charge be considered as input tax?

As per GST Law, the definition of input tax includes the tax payable under sub-section (3) of section 7 (Reverse Charge). The credit can be availed if such goods and/or services are used, or are intended to be used, in the course or furtherance of his business. So, the GST on reverse charges is considered as Input Tax

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