What is GST Credit

Last updated at April 16, 2024 by

If Tax on Purchase and Expenses (called Input GST)

is more than

Tax on Sales (called Output GST)

Difference is called

GST Credit

what is GST Credit.jpg

 

 

Note

GST Credit is also calculated in positive 

Hence we use formula 

Input-Output

instead of

Output-Input

 

Transcript

What is GST Credit Purchase 40000 IGST 2000 Total 42000 INPUT GST 2000 OUTPUT GST 1500 INPUT GST 2000 Gst on Purchase is called Input GST Sales 30000 IGST 1500 Total 31500 OUTPUT GST 1500 Gst on Sales is called Output GST GST Payable =0 GST Payable=Output-Input GST Credit=500 GST Credit=Input-Output

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CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 14 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.