Here we will discuss changes/amendment made in GST Adjustment from  1 Feb ,how IGST Credit will be adjusted with CGST SGST Liability

(If there is IGST Credit and CGST SGST Output)

Till 31st Jan 2019

In this case,First Output CGST will be adjusted with Input CGST

If any Balance left, it will be adjusted with IGST Credit

CGST Credit Image.jpg

 

FROM 1 FEB 2019

In this case,First Output CGST will be adjusted with  IGST Credit

Then we will adjust Output SGST with  IGST Credit

After that we will use Input CGST and Input SGST

 

IGST Credit Image.jpg

 

Sequence will be as follows

Output IGST can be adjusted with Input GST in the following order

  1. Input IGST  if any
  2. Input CGST if any
  3. Input SGST  if any 

 

 

Examples 

In books of a Delhi Shopkeeper

Goods Purchased from Punjab

Q 13 GST Adjustment new 2019.jpg

 

Answer

A 13 GST Adjustment new 2019.jpg


Adjustment of CGST and SGST Credit with IGST Sales

In this case,First Output CGST will be adjusted with Input CGST

If any Balance left, it will be adjusted in IGST

Similarly,

First Output SGST will be adjusted with Input SGST

If any Balance left, it will be adjusted in IGST

 

Sequence will be as follows

Output IGST can be adjusted with Input GST in the following order

  1. Input IGST  if any
  2. Input CGST if any
  3. Input SGST  if any 
  1. 1 output IGST adjust.jpg

 

Note

There is no change in this adjustment from 1 Feb 2019

Examples

Q 8

In books of a Delhi Shopkeeper

Goods Purchased from Delhi Plastic Bottles

PARTICULARS QTY RATE AMOUNT
Bottles in pieces 5000 20 100000
CGST 9%     9000
SGST 9%     9000
TOTAL     118000

Suppose 1000 pcs Sold to Chennai Buyer at 30 per kg
Also 2000 pcs sold in Delhi @ 40 per kg

Make Sales Bills

 

PARTICULARS QTY RATE AMOUNT
Bottles in pieces 2000 40 80000
CGST 9%     7200
SGST 9%     7200
TOTAL     94400
PARTICULARS QTY RATE AMOUNT
Bottles in pieces 1000 30 30000
IGST 18%     5400
       
TOTAL     35400

Make GST Computation

View Answer
  1.  

Examples

In books of a Delhi Shopkeeper

Goods Purchased from Delhi Plastic Bottles

PARTICULARS QTY RATE AMOUNT
Bottles in pieces 5000 20 100000
CGST 9%     9000
SGST 9%     9000
TOTAL     118000

Whole Stock of 5000 pcs Sold to Chennai Buyer at 30 per kg

Make Sales Bill

View Answer

Make GST Computation

View Answer

Example

In books of a Delhi Shopkeeper

Goods Purchased from Delhi Plastic Bottles

PARTICULARS QTY RATE AMOUNT
Bottles in pieces 5000 20 100000
CGST 9%     9000
SGST 9%     9000
TOTAL     118000

Suppose 3000 pcs Sold to Chennai Buyer at 30 per kg

Make Sales Bill

View Answer

Make GST Computation

View Answer

Q 7

In books of a Delhi Shopkeeper

Goods Purchased from Delhi Plastic Bottles

PARTICULARS QTY RATE AMOUNT
Bottles in pieces 5000 20 100000
CGST 9%     9000
SGST 9%     9000
TOTAL     118000

Suppose 1000 pcs Sold to Chennai Buyer at 30 per kg

Make Sales Bill

View Answer

Make GST Computation

View Answer


CGST and SGST Cannot be Adjusted Against Each Other

CGST credit cannot be adjusted against SGST Payable.

Similarly, SGST Credit cannot be adjusted CGST Payable.

However, both can be adjusted against IGST Payable


Sequence of Adjustment

Output IGST can be adjusted with Input GST in the following order

  1. Input IGST  if any
  2. Input CGST if any
  3. Input SGST  if any 

Cant be Adjusted with each other.jpg

Q 10

TYPE OF SALES

1.  LOCAL SALES

Q 10 i.jpg

2.  LOCAL PURCHASES

Q 10 ii.jpg

Company had Opening Input of Service

  • Tax - 20
  • Vat - 110
View Answer

Note:-

CGST and SGST Cannot be Adjusted Against Each Other

Hence,we have to carry forward SGST Credit OF 20

Also we have to pay CGST OF 140

We cannot adjust the two

Q 11

Solve last question assuming there is Interstate Sales and Purchases also as follows

INTERSTATE SALES

Q 11 i.jpg

INTERSTATE PURCHASE

Q 11 ii.jpg

View Answer

SUMMARY

GST ADJUSTMENT CHART

ADJUSTMENT OF  ALLOWED OR NOT ALLOWED
CGST CREDIT AND IGST PAYABLE ALLOWED
SGST CREDIT AND IGST PAYABLE ALLOWED
CGST CREDIT AND SGST PAYABLE NOT ALLOWED
SGST CREDIT AND CGST PAYABLE NOT ALLOWED
IGST CREDIT AND CGST PAYABLE OUTPUT CGST ALLOWED
IGST CREDIT AND CGST PAYABLE OUTPUT SGST ALLOWED
  1. GST - Goods and Services Tax, India
  2. GST Computation & Accounting

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 10 years. He also provides Accounts Tax GST Training in Delhi and Pune.