Cgst & sgst

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 June 2017 Dear Experts.
i have heard that in intra state sale we have to charge both SGST and CGST. pls clarify if it is true then how both will be charge in single invoice .

Thanks
Swati jain

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
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21 June 2017 Yes it is true . If rate is 12% then 6% CGST & 6% SGST charged.

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CA Shubhanshu Jain

CA Shubhanshu Jain (Expert)
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21 June 2017 Yes, in case of intra state sales both CGST & SGST is to be charged.

Rates mentioned under GST are for IGST which is levied in case of inter state sales
IGST = CGST (50%of IGST) + SGST (50%of IGST)

Now Let suppose you are dealing in an item which comes under tax bracket of 18%, so in case of interstate sales 9% CGST and 9% SGST is to be charged.

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Querist : Anonymous

Querist : Anonymous (Querist)

21 June 2017 thanks for your prompt reply... sir/mam... can we adjust the ITC of SGST for the payment of CGST or not

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
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21 June 2017 Yes you can

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CA Shubhanshu Jain

CA Shubhanshu Jain (Expert)
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21 June 2017 Under GST there is no restriction on availament of credit rather restriction is on utilization of same

As per Section 49(5) of GST Act, 2017 available input tax credit can be utilized in following manner

> Credit of IGST
1st against payment of IGST
Then for CGST
Then for SGST

> Credit of CGST
1st for CGST
Then for IGST

> Credit of SGST
1st for SGST
Then for IGST

and Credit of CGST shall not be utilized towards payment of SGST

similarly Credit of SGST shall not be utilized towards payment of CGST

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CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
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21 June 2017 Thanks CA Shubhanshu Jain. I am missing that information.

Querist : Anonymous

Querist : Anonymous (Querist)

21 June 2017 sir.. first if once credit of SGST has been utilize for the payment of output SGST then how it can be utilize for the payment of IGST.

pls clarify...

Thanks

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
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21 June 2017 If input SGST is more than output SGST

Querist : Anonymous

Querist : Anonymous (Querist)

21 June 2017 Mam/sir.... assume if in any month we have input SGST and have only output IGST No output SGST then can we adjust input SGST for the payment of output IGST.

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
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21 June 2017 Yes then you can do so.

Querist : Anonymous

Querist : Anonymous (Querist)

22 June 2017 Mam... but according to shubhanshu sir views credit of SGST first for SGST and then for IGST

CA Shubhanshu Jain

CA Shubhanshu Jain (Expert)
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22 June 2017 Yes you can adjusted, That above provision means if you have have credit of SGST then you have to adjust that first towards payment of SGST, if any but if there is no output tax of SGST then credit of SGST is available for making payment of IGST.

Lets take an example

Input tax credit of SGST : Rs. 5000
Output tax payable SGST : Rs. 2000
IGST : Rs. 4500
Then in this case Credit of Rs. 5000 is to adjusted first against SGST (Rs. 2000) and balance Rs. 3000 against IGST.
But, if in above case Output tax of SGST is NIL then whole 4500 of IGST can be adjusted from input tax credit of SGST.

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