222

$show=home

Welcome to Accounting Education

The Accounting University with 3400+ Accounting contents as study material which can watch, read and learn anyone, anywhere.

Start your studies

$show=home

Latest $type=three$count=6$author=hide$comment=hide$label=hide$date=hide$show=home$s=0

Journal Entries $type=three$count=6$author=hide$comment=hide$label=hide$date=hide$show=home$s=0

Balance Sheet $type=three$count=6$author=hide$comment=hide$label=hide$date=hide$show=home$s=0

Missing Trader Problem in GST



After coming of GST, missing trader problem may arise. For understanding this problem, we explain it with a simple example. Please forget CGST and SGST and IGST. We are focusing accounting  loss of next trader due to missing of previous trader.

Mr. Rajesh has his own business in Surat. He needed some goods of Rs. 1,00,000. So, he bought same goods from Mis Ranuka. Now, Mis Ranuka is seller and Mr. Rajesh is buyer. Following is the Invoice which will be given by Mis Ranuka to Mr. Rajesh

Goods Sold = Rs. 1,00,000

GST ( 20%) = Rs. 20000
---------------------------------------
Total = Rs. 120,000
=======================

Now, Revenue of Sold goods and GST in the pocket of Mis. Ranuka. Mr. Rajesh has paid full amount of RS. 120,000 and received goods.

He has trading business. He sold same goods to Mr. Mohan at Rs. 102,000 at 20% profit. GST is on sale. So, He collected following amount from

Goods sold value = Rs. 102,000
GST (20%) = RS. 20400
_____________________________

GST (20%) = Rs. 20400

=========================

He collected sales amount from Mr. Mohan. He filled GST Return and paid Rs. 20,400 through challan. He claimed Rs. 20,000 from GST Department as Input Credit because he already paid Rs. 20,000 during the time of purchase. GST department has rejected because GST Department did not receive Rs. 20,000 from Mis Ranuka because Mis Ranuka is missing. She did not file the return.

Now, this problem is called missing trader problem in GST. We see how is net loss to next trader.

Net Tax liability of Mr. Rajesh was = Rs. 20400-20000 = Rs. 400

But he paid Rs. 20400 and did not get input credit of Rs. 20,000 due to missing trader Mis Ranuka.

Total loss of Mr. Rajesh = Rs. 20000

Profit from this deal = Rs. 102000 - Rs. 100000 = Rs. 2000
---------------------------------------------------------------------------

Net loss of Mr. Rajesh = Rs. 18000
============================================

In the balance sheet, this net loss will be deducted from capital. No central or state govt. is responsible for this missing trader problem.

Related Resources :


Comments

: 2
  1. Does this happen to VAT and excise duty currently?

    ReplyDelete
    Replies
    1. Dear, now there is no use of VAT and excise duty in accounting because new law GST has merged all indirect taxes.

      Delete
In comment, you can give your feedback, reviews, ideas for improving content or ask question relating to written content.

 


Name

access,2,account,86,accountant,95,Accounting,685,accounting definitions,99,accounting ebook,3,Accounting education,85,Accounting Education Ads Help,1,accounting procedure,2,accounting process outsourcing,2,Accounting Software,52,advance,3,advertising,6,africa,7,Amalgamation,6,amendments,16,Amortization,1,announcements,62,Annuity,2,assets,53,audit,47,auditing,41,Australia,2,B.Com.,22,balance sheet,88,bank,111,Bank reconciliation,12,banking,33,basic accounting,110,BBA,1,benefits,13,best,50,bill,12,black money,3,blog,12,bloggers,7,book keeping,4,bookkeeping,3,Branch Accounting - full tutorial,8,budget,35,Budget variance,13,business,65,businessman,9,CA,30,calculator,4,canada,3,capital,72,capital budgeting,27,career,21,cash,40,cash book,8,cash flow statement,11,Chiense,1,children,13,china,6,class,3,coaching,2,coins,2,college,6,commerce,10,commerce students,7,company,36,computer,9,computer accounting,1,conference,4,Contact vinod kumar,1,Control Your Spending,27,corporate accounting,69,cost,160,cost accounting,195,cost center,8,cost centre,1,CPA,2,credit,18,credit card,11,cs,10,currency,35,data,11,Debit and credit,17,debit cards,1,debt,62,debtor,21,degree,6,depletion,2,depreciation,38,Diwali Messages,12,documents,4,dollar,5,domain,3,Downloads,3,Dubai,1,e-accounting,17,earning,17,education,246,Education Loans,6,email,15,employee,4,EPF,2,ERP,7,euromoney,1,examination,7,excel,17,excise duty,6,expenses,65,facebook,7,factor of loan,1,fans,2,feature,32,fifo,5,FII,4,fiji,1,finacle,1,finance,823,Finance Journal Entries,6,Financial,134,financial accounting,147,Financial Statements,4,fire insurance,3,flickr,2,flow,4,forensic,4,forex,21,formula,8,france,1,fraud,6,free,2,fun,34,function,1,fund,48,GAAP,36,GDP,1,gdr,5,germany,1,gold,7,goodwill,4,goodwill accounting,3,google,34,google apps,3,google apps,1,google base,1,google buzz,1,google calendar,1,Google docs,38,google finance,3,google fusion tables,1,google talk,5,govt.,5,GST,33,guide,85,health,6,Hindi,2,Hindi Language,3,history,3,holding company,3,How to treat FBT in Tally 9,1,HRA,3,ICAI,11,ICAWI,3,ICICI Bank,1,IFRS,11,income,17,income statement,19,Income Tax,8,India,57,indian railway,1,Indonesia,1,inflation,4,inflation accounting,3,infographics,8,information,7,inspiration,176,insurance,14,insurance accounting,2,Intangible,3,interest,26,international,7,Internet,40,Introduction of Tally 9,1,inventory,41,investment,135,investment in Shares,6,invoice,3,IT,1,Japan,1,Job costing,4,journal entries,144,Journal Entries eBook Help,4,Kalculate,1,keyboard,3,kuwait,2,laptop,2,law,4,LBT,1,learning,36,lease,5,lecture,11,ledger,17,leducation,1,Leverage Analysis,7,liabilities,16,lifo,3,linkedin,1,loan,74,logical point,1,loss,5,loss of profit,1,M.Com.,5,m.phil,2,malaysia,3,management accounting,129,manual accounting,4,manufacturing account,1,market,11,marketing,3,mastercard,2,material,13,MBA,14,MCA,1,media,4,migration,2,mobile,9,money,61,ms word,3,ms. excel,14,multi currency in tally 9,1,Multicurrency Accounting,3,mutual fund,30,national security,1,new and sacrifice ratio,1,new york times,1,new zealand,1,news,1,NGO,5,nonprofit-accounting,6,North Georgia Mountains,1,Notification,1,NPV,17,NSE,1,odbc,2,office,10,oman,1,online application,2,online accounting,11,Online Accounting Course,6,otcei,1,pakistan,3,parents,3,Partnership,1,pay pal,3,pdf,4,Personal Finance,6,pie chart,1,pie chart of income,2,pnb,5,podcast,1,ppf,1,presentation,10,price,7,privacy policy,2,prof. vinod kumar,13,profit,24,profit and loss account,12,project management,11,provision,14,purchase,9,puzzles,2,quickbooks,3,Quote,22,quotes,42,quotes of svtuition,1,rating agency,2,ratio analysis,34,RBI,7,readers,13,real estate,13,rectification of errors,11,remote control,2,reports,10,reserves,8,responsibility accounting,4,retirement,2,revenue,3,Revenue reserves,2,review,7,risk,11,rupees,9,salary,5,sale,12,SAP,3,saudi arabia,1,saving,19,sbi,9,scholarship,2,school,1,SEBI,13,security,30,service tax,23,share,20,share trading,15,Shares,16,shri lanka,3,singapore,2,sms,6,social accounting,7,society,5,solution,219,South Africa,1,stock,24,stock exchange,22,structure,6,student,39,students,70,study,21,subsidiary company,2,svtuition,14,swiss bank,2,tally,100,tally 9,8,Tally 7.2,8,Tally 9,42,Tally.ERP 9,59,TallyPrime,1,tanzania,2,tax,94,Tax Accounting,30,TDS,15,teacher,62,teaching,112,technology,33,test,40,testimonial,15,testimonials,15,thailand,1,tips,60,trading,5,trading on equity,2,transaction,7,trend,12,trial balance,14,truthfulness,1,tuition,3,twitter,10,UAE,5,UGC - NET Commerce,13,UK,11,United Arab Emirates,1,university,9,usa,25,valuation,9,VAT,22,Video,36,Voucher and vouching,4,Wealth,8,wikipedia,25,working capital,29,youtube,14,
ltr
item
Accounting Education: Missing Trader Problem in GST
Missing Trader Problem in GST
https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjpI-l4wY1eAJ7WStgBCQPTqlYxchlln_mmR23taJni4tDGKi9UvTOzLoaUbpIrikNpIT5uasvVOO3SVAwfoNJ8c1DhS1lyFEfyyXmxWZ5seDWFZikwRzPDsYnVh1v0gsfazVt71X8h_1If/s640/loss.png
https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjpI-l4wY1eAJ7WStgBCQPTqlYxchlln_mmR23taJni4tDGKi9UvTOzLoaUbpIrikNpIT5uasvVOO3SVAwfoNJ8c1DhS1lyFEfyyXmxWZ5seDWFZikwRzPDsYnVh1v0gsfazVt71X8h_1If/s72-c/loss.png
Accounting Education
https://www.svtuition.org/2017/04/missing-trader-problem-in-gst.html
https://www.svtuition.org/
https://www.svtuition.org/
https://www.svtuition.org/2017/04/missing-trader-problem-in-gst.html
true
2410664366776677676
UTF-8
Loaded All Posts Not found any posts VIEW ALL Reply Cancel reply Delete By Home PAGES Contents View All RELATED CONTENTS FOR YOUR LEARNING Topic ARCHIVE SEARCH ALL POSTS Not found any post match with your request Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS PREMIUM CONTENT IS LOCKED STEP 1: Share to a social network STEP 2: Click the link on your social network Copy All Code Select All Code All codes were copied to your clipboard Can not copy the codes / texts, please press [CTRL]+[C] (or CMD+C with Mac) to copy