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Input credit

Marvel Tulshyan (45 Points)

20 January 2018

If I purchase within state and sell outside state how will I claim input... will I have to pay double tax on 1 item....

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4 Replies

Rammi_RP Rawat (Accountant ) (386 Points)
Replied 20 January 2018

No No double tax

In case of Intra State transactions, you collects both CGST & SGST from the buyer and CGST needs to be deposited with Central Govt. and SGST with State Govt.

How to adjust the Credit?

Setoff of IGST, CGST & SGST will be as follows in the below mentioned chronological order only.

Credit Of To Be Adjusted With

CGST A. CGST

B. IGST

SGST A. SGST

B. ISGST

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Marvel Tulshyan (45 Points)
Replied 20 January 2018

output igst cannot be set off against input cgst and sgst..

Rammi_RP Rawat (Accountant ) (386 Points)
Replied 20 January 2018

Please Note

1. Credit Of CGST- Allowed 1st for payment of CGST & the balance can be utilised for the payment of IGST. ( Credit Of CGST in not allowed for payment of SGST)

2.Credit Of SGST/UTGST- Allowed 1st for payment of SGST/UTGST & the balance can be utilised for the payment of IGST. ( Credit Of SGST/UTGST in not allowed for payment of CGST).