Very important confusion on gst

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Guest

1) Within State and then state to state:-

ABC PVT. LTD.(Maharashtra) purchase goods from 123 PVT. LTD.(Maharashtra).

Invoice:- Product Price = 10,000/-

SGST :- 9% (10,000*9%)= 900/-

CGST :- 9%(10,000*9%)= 900/-

That means ABC company paid GST to 123 company total 1,800/-...

Now ABC company sale this goods to ZZZ Enterprice(West Bengal)..

Sale invoice:- Product Price = 20,000/-

IGST :- (20,000/-*18%)= 3,600/-

Now the result is ABC company paid

SGST Rs. 900/- to 123 company.

CGST Rs. 900/- to 123 company.

And ABC company collect :-

IGST Rs. 3,600/- from ZZZ company.

Now ABC company will paid tax to government Rs. 3,600/- or (3,600-900-900)= 1,800/-?

Replies (15)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

197923 Points Joined July 2016

Rs. 1800/-

SSG

1936 Points Joined March 2007

Can we set off SGST against IGST?

AWANEESH

self employed

30 Points Joined August 2013

Rs. 1800/-

input credit of CGST and SGST both can be set off with IGST payable

TSV DIWAKAR

PROPRIETOR

66 Points Joined October 2010

It is very clear. Total Output tax Rs. 3,600/- minus already remitted SGST+CGST (Rs. 900/- + Rs. 900/-) Rs. 1,600/- = payable Rs. 1,800/-.

T S V Diwakar, Advocate

Sunil Kumar

Indirect Taxation

1246 Points Joined May 2012

Please read Section 35 of Draft model law which permits credit of SGST and CGST against payment of IGST.

Hope, I am clear.

Reagrds

It is true that Chapter IX Payment of Tax in which Section 35 (5) clearly states about the adjustiment of SGST, CGST and IGST. Section 35 (5)(c) clearly states that the input tax credit on account of CGST shall not be utilised towards payment of SGST. However the State Governments and opposition parties are objecting to accept the proposal since there is one tax one country and the adjustment shall also be equal and there shall not be kept alone CGST which is monitered by Central Government.

Sunil Kumar

Indirect Taxation

1246 Points Joined May 2012

Sir, it was past when they were fighting against the basis of gst structure. Now both Centre and states are agree for Dual structure of GST. For this purpose Article 269A of constitution prescribe the payment mechanism of IGST. Since, bill get unanimously assent of both houses which means both centre and states are agree for this.

If, i am wrong please counter.

Regards

TSV DIWAKAR

PROPRIETOR

66 Points Joined October 2010

The Both the houses unanimously accepted for the 122 amendment of constitution. The Actual Act and Rules will be prepared by the Committee headed by the Director General of GST. Since the Act and Rules are not finalised there is no point in prolonging the discussion.

T.S.V. Diwakar, Advocate

Sunil Kumar

Indirect Taxation

1246 Points Joined May 2012

Sir,

I guess we are not discussing any act, rules. We are discussing

Sunil Kumar

Indirect Taxation

1246 Points Joined May 2012

Contd.

But discussing the payment mechanism.

Which altogether accepted by both houses. Which means act will have provision as discussed.

Nevertheless,
It was healthy discussion.

Sunil Kumar

Indirect Taxation

1246 Points Joined May 2012

Hope,

Mr. Paul get his answer.

TSV DIWAKAR

PROPRIETOR

66 Points Joined October 2010

If you strongly know the fact, I do not want to comment.

Darby Danniel

1 Points Joined September 2016

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