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Currently on Central purchases,CST is charged for which we do not get any Input
However,on sales,we have to pay CST

Q1

Purchase Semi Finished Goods

Particulars Amount Particulars Amount
Purchase 40000 Purchase 60000
Excise 12.5% 5000 Excise 12.5% 7500
Total 45000 Total 67500
Vat 5% 2250 CST 2% 1350
Total 47250 Total 68850

Sales  Finished Goods

Particulars Amount Particulars Amount
Sales 120000 Sales 20000
Excise 15000 Excise 2500
Total 135000 Total 22500
Vat 5% 6750 CST 2% 450
Total 141750 Total 22950

What is Excise Duty Payable?

-a-

Particulars Amount
Output Excise 15000
Less  
Input Cenvat 7500
Excise Duty Payable 7500

-ea-

What is Vat and CST Payable?

-a-

Particulars Amount Particulars Amount
Output Vat 6750 Output CST 450
Less      
Input Vat 2250    
Vat Payable 4500 CST Payable 450

There  is no Input of CST

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Note:-

After Implementation of GST,on Central Purchase and Sales, IGST wil be charged
Input of these can be adjusted in this order
1. IGST on Sales
2. CGST on Sales
3. SGST on Sales

Example

Purchase Semi Finished Goods

Particulars Amount Particulars Amount
Purchase 40000 Purchase 60000
CGST 12.5% 5000 IGST 17.5% 10500
SGCT 5% 2000    
Total 47000 Total 70500

Sales  Finished Goods

Particulars Amount Particulars Amount
SALES 120000 SALES 20000
CGST 12.5% 15000 IGST 17.5% 3500
SGCT 5% 6000    
Total 141000 Total 23500

What is GST Payable?

-a-

PARTICULARS CENTRAL GST STATE GST IGST TOTAL GST
OUTPUT GST 15000 6000 3500 24500
LESS        
INPUT GST 5000 2000 10500 17500
GST PAYABLE 10000 4000 -7000 7000

This GST CREDIT OF 7000 can be adjusted with Central GST first of 15000 and remaining if left with State GST as shown below

PARTICULARS CENTRAL GST STATE GST
GST PAYABLE 10000 4000
Less    
ADJUST WITH IGST 7000 0
BALANCE PAYABLE 3000 4000

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  1. GST - Goods and Services Tax, India
  2. GST Impact
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CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 7 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com .
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