Basic Question - Calculating GST amount to be paid

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NA
63 Points Posted on 18 April 2020

Hi  Friends.

Pls.forgive me as I am asking a very basic question - I want to know how to calculate GST amount to be paid as per sale /purchase .

Pls. correct me if I am wrong --

GST amount to be paid = Output GST --Input GST.

CGST =OCGST -IGST 

SGST = OSGST -IGST

For example --        My Service Invoices (output)GST amount is  CGST 10000 SGST 10000 & Purchase Amount is (Input ) --  CGST - Rs 500 , SGST Rs.500  , IGST -- 500

Then My Tax calculation will be -   

CGST ----  Rs10000 - Rs.500 (IGST) - CGST Rs,500 (input) = Rs 9000

SGST  --- Rs. 10000 - Rs.500 (input) = Rs 9500

Total GST to be paid -- Rs.18500

Is it good Idea to make excess payment ? Sometime small amount to be paid is reflected due to interest .Some excess amount might compensate for the difference. however I have been discouraged to do so .

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On 18 April 2020 at 16:24 Report
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Quick Summary
This discussion clarifies how to calculate the Goods and Services Tax (GST) amount payable. The general principle is Output GST minus Input GST. However, it's important to note that CGST and SGST liabilities must be settled separately and cannot be offset against each other or other tax heads. Furthermore, any excess GST payments are credited to a cash ledger and cannot be used to cover interest or penalties, which must be paid on their specific heads.

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8 Points Posted on 18 April 2020
No excess payment will be credited in your credit ledger.
you have to pay Interest and Penalty through cash ledger it will not be set off with excess amount of Tax paid.
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On 18 April 2020 at 17:32
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"Do the Right Thing...!!!"
128157 Points Posted on 18 April 2020
@ Mr Varad.,

As per Your said calculations You want to be pay CGST Rs 9000 & SGST Rs 9500. (Bothering of CGST and SGST payable under Tax head). Payments under tax only can be set off to Taxes.

But,
Interest and Late Fee must be payable on separate heads of CGST - Late Fee and SGST - late Fee. These late fee can't set off to any other heads...
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On 18 April 2020 at 17:42
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Manager - Finance & Accounts
2178 Points Posted on 18 April 2020

Hi Varad, 

the net payable amount Rs. 18,500 is correct. And paying any extra GST does not save you from interest charges. any gst  payment you made credited to cash ledger. which lies as a available cash balance. from there you offset liability in GSTR 3B. 

Hope this helpful. Thank you. 

 

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On 18 April 2020 at 17:45
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NA
63 Points Posted on 18 April 2020

Good Evening all of you 

Thank you so much for detailed explanation which has cleared all my doubts. My calculations are right and tax /penalties come under different ledger. so excess payment will not compensate for interests .

Thank you  again,

 

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On 18 April 2020 at 17:57
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"Do the Right Thing...!!!"
128157 Points Posted on 18 April 2020
Yeah...
Payment will be payable on separate heads. Then only it's set off to correct heads...

Any excess payments can't set off to other heads...
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On 18 April 2020 at 18:01

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