Application of GST in India

Manufacturer – For the manufacturer, the GST will be applicable on the purchase of the raw materials and on the value that was added for the development of the product.

Service Provider – Here the service provider pays the GST on the purchase price and the value added to it. But, here, the manufacturer’s GST may be discounted from the GST amount that is to be paid.

Retailer – The retailer pays the GST on the product purchased from the distributor and on the added margin. Similarly, here the additional GST will be deducted from the total GST amount that should be paid.

Consumer – The consumer pays the GST on the product that has been purchased.

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