Basic Question - Calculating GST amount to be paid

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varad

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 .

Replies (5)

Samrendra Pandey

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.

RAJA P M

"Do the Right Thing...!!!"

128152 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...

Ajay Kumar Maggidi

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.

varad

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,