Currently there is no Input of Central Purchases

A LTD C LTD
Purchase 20000 Purchase 120000
Vat 5% 1000 Cst 2% 2400
  21000   122400
 XLTD Z LTD
Sale 140000 Sale 30000
vat 5% 7000 Cst 2% 600
  147000   30600

What is vat and cst payable?

       
Vat Computation   CST Computation
Output Vat 7000 Output CST 600
Input Vat 1000    
Vat Payable 6000 CST Payable 600

In Future
On Central Purchases,IGST Will be Charged which can be adjusted in this order
1. IGST on Sales
2.CGST on Sales
3.SGST on Sales

PARTICULARS AMOUNT PARTICULARS AMOUNT
PURCHASES 20000 PURCHASES 120000
CENTRAL GST 12.5% 2500 IGST 17.5% 21000
STATE GST 5% 1000 GRAND TOTAL 141000
Sales Bill    Sales Bill   
PARTICULARS AMOUNT PARTICULARS AMOUNT
SALES 140000 SALES 30000
CENTRAL GST 12.5% 17500 IGST 17.5% 5250
STATE GST 5% 7000 GRAND TOTAL 35250
GRAND TOTAL 164500    

 

PARTICULARS CENTRAL GST STATE GST IGST TOTAL GST
OUTPUT GST 17500 7000 5250 29750
LESS        
INPUT GST 2500 1000 21000 24500
GST PAYABLE/(CREDIT) 15000 6000 -15750 5250

This GST CREDIT OF 15750 can be adjusted with Central GST first of 15000 and remaining with State GST as shown below

PARTICULARS CENTRAL GST STATE GST
GST PAYABLE 15000 6000
Less    
ADJUST WITH IGST 15000 750
BALANCE PAYABLE 0 5250

REMARKS
Input of CST is now available which is a good step and less tax is payable in this case
However,Adjustment is a little complicated and 3 different returns are to be filled in this case

  1. GST - Goods and Services Tax, India
  2. GST Impact
Ask Download

About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 6 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com .
Jail