Last updated at Dec. 16, 2024 by Teachoo
If Tax on Purchase and Expenses (called Input GST)
is more than
Tax on Sales (called Output GST)
Difference is called
GST Credit
Note
GST Credit is also calculated in positive
Hence we use formula
Input-Output
instead of
Output-Input
What is GST Credit Purchase 40000 IGST 2000 Total 42000 INPUT GST 2000 OUTPUT GST 1500 INPUT GST 2000 Gst on Purchase is called Input GST Sales 30000 IGST 1500 Total 31500 OUTPUT GST 1500 Gst on Sales is called Output GST GST Payable =0 GST Payable=Output-Input GST Credit=500 GST Credit=Input-Output
Chapter 2 GST Working
What is GST Credit You are here
Difference between GST payable and GST Credit
What is Treatment of GST Credit
Understanding Different Cases of Computation
How to Make GST Computation in Case Of GST Payable
How to Make GST Computation in Case Of GST Credit Adjustment or Setoff
About the Author
CA Maninder Singh is a Chartered Accountant for the past 14 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.