Gst calculations

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 October 2018 Hi everyone
Tax free sale 10 lacs
Gst sale 1 lacs
Gst collected 5 thousand
Gst paid on purchase of machinery 3 thousand
Gst paid on job work 4 thousand
Gst collected on job work 2 thousand
Please give us our gst tax liablity
Please reply as early as possible

Thanks in advance

Querist : Anonymous

Querist : Anonymous (Querist)

16 October 2018 Please reply as early as possible

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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12 July 2024 To calculate the GST liability based on the information provided, let's break down the transactions:

1. **Tax-free sale**: 10,00,000 (10 lakhs)
2. **GST taxable sale**: 1,00,000 (1 lakh)
- GST collected on taxable sale: 5,000
3. **GST paid on purchases of machinery**: 3,000
4. **GST paid on job work**: 4,000
- GST collected on job work: 2,000

### Step-by-Step Calculation:

#### 1. Compute Output GST Liability:
- **GST on taxable sale**: 1,00,000 * GST rate
- Assuming a GST rate of 18% (as an example),
- GST on taxable sale = 18,000

#### 2. Compute Input Tax Credit (ITC):
- **Total Input Tax Credit (ITC)** = GST paid on purchases of machinery + GST paid on job work
- Total ITC = 7,000

#### 3. Determine Net GST Liability:

- **Net GST liability** = GST on taxable sale - Total ITC + GST collected on taxable sale - GST collected on job work

- Net GST liability = 14,000

### Summary of GST Liability:

Based on the transactions provided:

- **GST liability** is **Rs. 14,000**.

This calculation assumes a GST rate of 18% for the taxable sale. If the actual GST rate applicable to your transactions differs, you should adjust the GST calculation accordingly. Also, ensure that the ITC claimed is eligible under GST rules and regulations.

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