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. 

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 26 August 2026
Article Assistant

ANIVESH CONSULTANTS LLP

Gurgaon

CA Inter

View Details
Company
24 August 2026
Semi-Qualified CA/CA Finalist - Tax, GST, Audit & Accounts

Bharat Shah & Associates

Mumbai

CA Inter

View Details
Company
04 September 2026
CA inter Or ca finalist

A Jaiswal and company

Lucknow

CA Final

View Details
Company
ARTICLESHIP 29 August 2026
Article Assistant

RRPM & ASSOCIATES LLP

Chennai

CA Inter

View Details
Company
08 August 2026
International Corporate Tax Advisory

Shulke

Bengaluru

CA

View Details
Company
ARTICLESHIP 17 August 2026
Article Assistant

K R Kiran Kumar & Associates

Bengaluru

CA Inter

View Details
Company
Featured 06 August 2026
Junior Accounting Associate

Prish Consultancy LLP

New Delhi

B.Com

View Details
Company
ARTICLESHIP 25 August 2026
CA Article's

Saini Pati Shah & Co LLP

Mumbai

CA Inter

View Details