web analytics

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 

8.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

-a-

A 10 i.jpg

-ea-

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

-a-

A 11 i.jpg

IGST Computation

A 11 ii.jpg

-ea-

  1. GST - Goods and Services Tax, India
  2. GST Computation & Accounting
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 7 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com .
Jail