Sales Bill above 5000000 - 1% GST Cash Ledger to be paid or not

I am doing private contract work i have issued a Invoice in August 2021 for Rs. 5100000/- GST 18% - 918000/- - Total 6018000/- I want to know whether i want to pay 1% GST in Cash Ledger or i can utilize full ITC amount in GST Tax 

Replies (6)
Quick Summary
This discussion addresses whether a 1% GST payment via cash ledger is required for sales exceeding £5 million. Generally, if your sales surpass this threshold, you can only utilise 99% of your Input Tax Credit (ITC) and must pay the remaining 1% in cash. However, an exemption applies if your latest Income Tax Return (ITR) shows a self-assessment tax liability of £100,000 or more. The nature of the contract, particularly if it's a works contract, may also influence GST applicability and rates.

AS you sales are above Rs 50 Lakh you can utilize ITC onlu upto 99% and pay 1% of your output liability in cash. However if in your latest ITR you have self assessment tax liaibity of Rs 1 lac or more you are exempted from this rule.

Private contract work is issued as invoice of Rs. 51 lakhs.
gst rate is different.
what is the nature of contract?
is there a works contract registration?
Originally posted by : Libissa
I am doing private contract work i have issued a Invoice in August 2021 for Rs. 5100000/- GST 18% - 918000/- - Total 6018000/- I want to know whether i want to pay 1% GST in Cash Ledger or i can utilize full ITC amount in GST Tax 

You may utilize 100% ITC provided u file ITR with tax laiblity of 100000

Originally posted by : sabyasachi mukherjee
Private contract work is issued as invoice of Rs. 51 lakhs.gst rate is different.what is the nature of contract?is there a works contract registration?

Work contract simply being in the nature if service attracts 18% tax rate

Read works contract act which is also included here.

Different types of works contract are categorized differently.

we need to refer to GST Act in the Instant Case. 

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