If Input GST is more than Output GST it is called GST Credit.
We calculate it Separately for different types of GST
Question 2
Sales Amount Within State 60000
Purchase Amount Within State 70000
GST Rate
CGST 9%
SGST 9%
Calculate GST Payable
GST Computation Format:-
| PARTICULARS | AMT | CGST | SGST | TOTAL GST |
| Output GST | 60000 | 5400 | 5400 | 10800 |
| input GST | 70000 | 6300 | 6300 | 12600 |
| GST PAYABLE | 0 | 0 | 0 | |
| GST Credit | 900 | 900 | 1800 |
Difference between GST Payable and GST Credit
| GST PAYABLE | GST CREDIT |
| If Output is more than Input, It is Called GST payable | If Input is more than Output, It is Called GST Credit |
| We need to pay challan to Pay tax |
No need to pay Challan to pay tax It is added to Input of next Month |
Note:-
Challan is a form used to pay tax
It is required only if tax is payable not used in case of tax credit
