Credit

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anand mehta (Querist)
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16 July 2017 I purchase plywood hardware laminate and make it a furniture.
On plywood and laminate I pay 28%, on hardware I pay 18%, and ready furniture there is 28%, how much credit I will get?

When I purchase raw material it will reflect on my closing stock... then how to convert raw material to finished goods ..i mean what will be accounting entry for above ?

RAJA P M

RAJA P M (Expert)
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16 July 2017 You purchase A @ 28% = 1000 + 280 = 1280 B @ 18% = 200 + 36 = 236 Total GST input = 316 Your Sales Furniture = 1000 + 280 = 1280 Taxes calculation, input - Output = Liability / ITC 316 - 280 = 36 (ITC) In case you can sell your all goods with margin sales 2000 + 560 = 2560 taxes, 316 - 560 = 184 as liability....

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