Hi,
What happens when company buys 100inr raw material and has to pay 10inr tax on it?
What happens when company makes sales of 100inr and has to pay 10inr tax collected?
Can we nullify 10inr?
Yasaswi Gomes new (Finance ) (4474 Points)
24 September 2022Hi,
What happens when company buys 100inr raw material and has to pay 10inr tax on it?
What happens when company makes sales of 100inr and has to pay 10inr tax collected?
Can we nullify 10inr?
prasad Nilugal
( GST Practitioner & Accounts )
(14167 Points)
Replied 24 September 2022
Yes, As per GST Act ,10inr paid on purchase, will be adjusted against 10inr tax payable
Output put tax payable A/c Dr 10inr
To Input tax credit A/c Cr 10inr .
(Output payable adjusted against ITC)
No tax payable -subject to input tax credit should not under block credit
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