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
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
Sequence will be as follows
Output IGST can be adjusted with Input GST in the following order
- Input IGST if any
- Input CGST if any
- Input SGST if any
Examples
In books of a Delhi Shopkeeper
Goods Purchased from Punjab
Answer
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
- Input IGST if any
- Input CGST if any
- Input SGST if any
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
CGST AND SGST COMPUTATION
IGST COMPUTATION
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
| PARTICULARS | QTY | RATE | AMOUNT |
| Bottles in pieces | 5000 | 30 | 150000 |
| IGST 18% | 27000 | ||
| TOTAL | 177000 |
Make GST Computation
View answer
CGST AND SGST COMPUTATION
IGST Computation
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
| PARTICULARS | QTY | RATE | AMOUNT |
| Bottles in pieces | 3000 | 30 | 90000 |
| IGST 18% | 16200 | ||
| TOTAL | 106200 |
Make GST Computation
View answer
CGST AND SGST COMPUTATION
IGST COMPUTATION
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
| PARTICULARS | QTY | RATE | AMOUNT |
| Bottles in pieces | 1000 | 30 | 30000 |
| IGST 18% | 5400 | ||
| TOTAL | 35400 |
Make GST Computation
View answer
CGST AND SGST COMPUTATION
IGST COMPUTATION
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
- Input IGST if any
- Input CGST if any
- Input SGST if any
Q 10
TYPE OF SALES
1. LOCAL SALES
2. LOCAL PURCHASES
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
INTERSTATE PURCHASE
View answer
IGST Computation
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 |
To practice GST Adjustment and Actual GST3B return attend our practical training classes