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gsharma | 2 years ago

> this would only serve the niche of "not-registered for GST and using cash"

Wouldn’t this segment have an incentive to not digitize their records as they’re evading tax?

This was the case several years ago, not sure if still relevant anymore. People evading tax were only interested in non-cloud solutions for their records.

discuss

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2Gkashmiri|2 years ago

No one is evading tax. Thats the beauty and craziness of gSt. All tax is already paid for and collected by govt.

What the end dealer does when he is nit registered for gst is avoid 18% tax on HIS MARGIN. thats peanuts compared to 90% of the product cost. That if end dealer gets 10% profit.

You only evade taxes in gst if you purchase imported goods outside of tax chain in cash or from manufacturers who sell in cash or service provider who sells in cash.

If you pay by bank, the gst is almost always paid beforehand