Page 11 - Ch1_Introduction

CCP 02.08.22.00
Mr. Ajay, a registered supplier of goods, pays GST under regular scheme and provides the following

information for the month of August 20XX:
Particulars ₹
Inter-State taxable supply of goods 10,00,000
Intra-State taxable supply of goods 2,00,000

Intra-State purchase of taxable goods 5,00,000
He has the following Input tax credit at the beginning of August 20XX:
Nature ITC Amount ₹ in
CGST 20,000

SGST 30,000
IGST 25,000
Rate of CGST, SGST and IGST are 9%, 9% and 18% respectively. Both Inward and outward supplies
are exclusive of taxes wherever applicable.

All the conditions necessary for availing the ITC have been fulfilled. Compute the net GST payable by
Mr. Ajay for the month of August 20XX. [CA Inter May 18]
Answer:-
Note 1: - Computation of total ITC

Particulars IGST@ 18% CGST@9% SGST@9%
Opening ITC 25,000 20,000 30,000
-
Add: ITC on Intra-State purchases 45,000 45,000
of taxable goods valuing ₹ 5,00,000

Total ITC 25,000 65,000 75,000

Computation of Net GST payable by Mr. Ajay for the month of August, 20XX
S.No. Particulars Taxable IGST @ CGST @ SGST @

Value ₹ 18% ₹ 9% ₹ 9% ₹
1 Intra-State taxable supply 2,00,000 - 18,000 18,000
of goods
2 Inter-State taxable supply 10,00,000 1,80,000 - -

of goods
Total GST Payable 1,80,000 18,000 18,000
3 Less : ITC (Note)
IGST - 25,000 (25,000) - -

4 CGST – 65,000 (47,000) (18,000) x
5 SGST – 75,000 (57,000) x (18,000)
Net GST payable 51,000 Nil Nil

Note:-

1. IGST credit is used to pay IGST 1st, once IGST credit is fully utilised then CGST/SGST credits are used first
to pay tax under same head & balance credit is used to pay IGST.
2. Also, SGST credit can be utilised to pay IGST only when credit of CGST is not available to pay IGST.

10 CA VISHAL BHATTAD 09850850800 www.vsmartacademy.com V’Smart Academy