Sage-Tips

Is GST applicable on reselling?

In GST law the outward tax is always payable on the Sale Value of goods sold, like in earlier indirect laws. But in GST, there is a concept of Margin scheme under which the registered person is allowed to pay GST on only MARGIN/ PROFIT portion. Similarly if there is loss, then no GST is payable.

Do you have to pay tax on resale items?

Generally, resellers to do pay sales tax when they purchase the items,but must collect sales tax when those items are sold to the end user. Resale exemptions, which are usually in the form of a resale certificate, allow your customer to acquire property tax-free if it will later be resold.

How do you calculate GST on a reseller?

GST Calculation Formula

1. Where GST is excluded: GST Amount = (Value of supply * GST\%)/100. Price to be charged = Value of supply + GST Amount.
2. Where GST is included in the value of supply: GST Amount = Value of supply – [Value of supply x {100/(100+GST\%)}]

Is GST compulsory for online selling?

Under GST, all online sellers must register and pay GST. This means that even if you only bring in Rs 1 lakh, you must go online and get a GSTIN. In addition, you’re required to file monthly returns and pay taxes on all qualified sales.

Do we need to pay GST for resale flat?

According to the new GST tax structure, residential projects which have received a completion certificate, or ready to move in properties cannot be classified as a service. Therefore, in the case of resale of such properties, there will be no GST levied.

Do retailers pay tax on wholesale?

Wholesalers are not required to charge sales tax to retailers because when a wholesaler sells to a retailer, that retailer is not the product’s end user. Therefore, the wholesaler does not have to collect sales tax on the transaction when selling to a retailer.

How do I calculate no GST?

For calculating GST, The following formula can be used by the taxpayer.

1. Add GST: GST Amount = (Original Amount x GST\%)/100. Net Price = Original Amount + GST Amount.
2. Remove GST: GST Amount = Original Amount – [Original Amount x {100/(100+GST\%)}] Net value = Original Amount – GST Amount.

What are the laws on reselling products?

Generally, it’s not illegal to resell an item that you have legitimately purchased. Once you have purchased something at retail it is yours to do with as you choose. If you’re using manufacturers’ logos to advertise the products you’re reselling, you need their permission.

Do you pay taxes on wholesale purchases?

When selling products wholesale, you generally do not have to worry about charging sales tax. (Therefore, when buying items at wholesale, you generally do not need to worry about paying sales tax.)

Do I have to pay GST on re-selling items under GST?

Yes, if you are re-selling the item then you become a trader. Thus, you need to make GST payment on such items. However, if you are purchasing from a gst registered person then you can take the input tax credit on such goods and set off the GST payable amount. Remaining payable amount must be paid to the government.

When to charge GST on goods and services?

When to charge GST If your organisation is registered for GST, or required to be, you will generally be liable to pay GST to us on the sales of your goods and services. These are called taxable sales.

Do you have to pay GST on precious metal in Australia?

Option to reverse charge in the precious metal industry. If you are registered for GST – or required to be – the goods and services you sell in Australia are generally taxable unless they are ‘GST-free’ or ‘input taxed’.

Can my organisation claim GST credits for input taxed sales?

Your organisation cannot claim GST credits for the GST included in the price of purchases it uses to make an input taxed sale.