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Sales Bill above 5000000 - 1% GST Cash Ledger to be paid or not

Libissa (Accountant) (318 Points)

14 September 2021

I am doing private contract work i have issued a Invoice in August 2021 for Rs. 5100000/- GST 18% - 918000/- - Total 6018000/- I want to know whether i want to pay 1% GST in Cash Ledger or i can utilize full ITC amount in GST Tax

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6 Replies

CS Advocate Abhishek Goyal (M Com FCS LLB M-AIMA ) (13597 Points)
Replied 14 September 2021

AS you sales are above Rs 50 Lakh you can utilize ITC onlu upto 99% and pay 1% of your output liability in cash. However if in your latest ITR you have self assessment tax liaibity of Rs 1 lac or more you are exempted from this rule.

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sabyasachi mukherjee (27105 Points)
Replied 14 September 2021

Private contract work is issued as invoice of Rs. 51 lakhs.
gst rate is different.
what is the nature of contract?
is there a works contract registration?

CA. Heet Shah (Tax Consultant & Practitioner) (6178 Points)
Replied 15 September 2021

Originally posted by : Libissa
	I am doing private contract work i have issued a Invoice in August 2021 for Rs. 5100000/- GST 18% - 918000/- - Total 6018000/- I want to know whether i want to pay 1% GST in Cash Ledger or i can utilize full ITC amount in GST Tax

You may utilize 100% ITC provided u file ITR with tax laiblity of 100000

CA. Heet Shah (Tax Consultant & Practitioner) (6178 Points)
Replied 15 September 2021

Originally posted by : sabyasachi mukherjee
	Private contract work is issued as invoice of Rs. 51 lakhs.gst rate is different.what is the nature of contract?is there a works contract registration?

Work contract simply being in the nature if service attracts 18% tax rate