Goods and Services Tax - Basic Study Notes

 

Indirect Taxation

Goods and Services Tax

Basic Study Notes

 

GST is divided into three parts:

1.   CGST (Central GST),

2.   SGST (State GST)/UTGST (Union Territory GST), and

3.   IGST (Integrated GST).

 

CGST

As per the Central Goods and Services Tax Act, 2017 CGST is levied and collected by the Central Government on intra-state supplies of taxable goods or services or both. It is a revenue source to the Central Government of India.

 

SGST/UTGST

As per the State Goods and Services Tax Act, 2017 SGST is levied and collected by the State Governments/Union Territories on intra-state supplies of taxable goods or services or both. It is a revenue source to the respective State Governments/Union Territories.

 

IGST

As per the Integrated Goods and Services Tax Act, 2017 IGST is levied and collected by the Central Government on all inter-state transactions of taxable goods or services or both. It is a mechanism to monitor the inter-state trade of goods and services and to ensure that the SGST component accrues to the Consumer State.

 

The revenue of GST from inter-state sales will not accrue to the exporting state and the exporting state will be required to transfer to the Central Government the credit of SGST used in payment of IGST.

 

Different rates of taxes under GST

Different GST rates are: 0% (nil-rated), 0.25%, 3%, 5%, 12%, 18% and 28%.

 

Let in an Intra-State supply rate of GST is 18% - In this case 9% will be shared by the Central Government as CGST and 9% will be shared by the respective State Government as SGST.

 

Let in an Inter-State supply rate of GST is 12% - In this case 6% will be shared by the Central Government as CGST and 6% will be shared by the respective Consumer State Government as SGST.

 

  The difference between zero rated supplies and exempted supplies

	Exempted Supplies	Zero rated Supplies
1	“Exempt supply” means supply of any goods or services or both which attracts ‘nil rate of tax’ or which may be specifically exempt from tax u/s 11 of CGST Act or u/s 6 of the IGST Act, and includes non-taxable supply.	“Zero-rated supply” means supply which is meant for export or supply of goods or services or both for authorised operations to Special Economic Zone (SEZ) developer or a SEZ unit.
2	No tax on the outward supplies: But the input supplies used for making exempt supplies to be taxed.	No tax on the outward supplies; Input supplies also to be tax free.
3	No ITC is available.	ITC can be claimed.
4	Any person engaged exclusively in the business of supplying goods or services or both which are wholly exempt from tax under the CGST or IGST Act shall have no liability of registration.	A person exclusively making zero rated supplies may have to register as refunds of unutilised ITC or integrated tax paid shall have to be claimed.
5	A registered person supplying exempted goods or services or both shall issue, instead of a tax invoice, a bill of supply	Normal tax invoice shall be issued

 

GST will not be applicable and levied on the following goods:

a)  Petroleum crude,

b)  High speed diesel,

c)  Motor spirit (commonly known as petrol),

d)  Natural gas,

e)  Aviation turbine fuel, and

f)   Alcoholic liquor for human consumption.

 

GST Number

GST Number assigned to registered businesses/individuals follow a specific structure. Key facts about the GST Number Format are as follows:

1.   The GSTIN consists of 15 digits.

2.   The first 2 digits can range from 01-35 and indicate the state code for the registration as per the Indian Census of 2011.

3.   The next 10 digits are the PAN number of the GST registered entity.

4.   The 13th digit of the GST Number is the entity code. It refers to the order in which registrations was made by a legal entity that has multiple registrations within the same state. In case a single legal entity has 2 business verticals registered within the same state, the first registration will have 1 as the 13th digit while the second registration will have 2 as the 13th digit.

5.   The 14th digit for current registrations is “Z” by default according to the current GST number format however this digit is essentially being retained for future use.

6.   The last digit (15th) is currently used as a check code and may be a number or alphabet that has been assigned randomly.

 

For getting a GST Number having PAN Card is essential. For every State there must be one separate GST Number for a dealer having branches in different States. For different branches within the State having one single GST Number is sufficient. Therefore, inter-state stock transfer within the same business will attract IGST, whereas intra-state stock transfer within the same business will not be liable for GST.

 

Exemption from GST for small taxable persons

As per Section 22(1) of the CGST Act, 2017 and Notification No. 10/2019, suppliers of goods and services exempted from obtaining registration w.e.f. 1^st April, 2019 are:

Sl. No.	States or UTs from where the supply of goods or services or both are made	Aggregate turnover not exceeding (Rs)
	For suppliers engaged exclusively in “supply of goods” :
1	Manipur, Mizoram, Nagaland, Tripura	10 Lakh
2	Uttarakhand, Meghalaya, Sikkim, Arunachal Pradesh, Puducherry, Telangana	20 Lakh
3	All the States and UTs of India other than those mentioned under serial numbers 1 and 2 above	40 Lakh
	For suppliers engaged exclusively in “supply of services” :
4	Manipur, Mizoram, Nagaland, Tripura	10 Lakh
5	All the States and UTs of India other than those mentioned under serial number 4 above	20 Lakh

 

Important notes:

1.   A supplier may obtain voluntary registration, even though his turnover does not exceed applicable threshold limit. In this case, he is required to pay tax without considering the aforesaid limits.

2.   In case of supplier of

a)   Ice-cream and other edible ice, whether or not containing cocoa;

b)   Pan Masala;

c)   Tobacco and manufactured tobacco substitutes;

d)   Fly ash bricks, fly ash aggregate with 90% or more fly ash content;

e)   Fly ash blocks;

f)    Bricks of fossil meals or similar siliceous earth;

g)   Building bricks; or

h)   Earthen or roofing tiles

The threshold limit applicable is Rs 20 Lakh (Rs 10 Lakh in case of Manipur, Mizoram, Nagaland and Tripura).

3.   For the purpose of registration under GST four states Manipur, Mizoram, Nagaland and Tripura are considered as “Special Category States”.

 

 

Reverse Charge

U/s 9(3) and 9(4) of the CGST Act and

U/s 5(3) and 5(4) of the IGST Act

 

Generally, the supplier of goods or services is liable to pay the GST to the Government. However, in specified cases like imports and other notified supplies, the liability to pay the GST may be cast on the recipient of goods or services under the reverse charge mechanism.

 

U/s 2(98) of the CGST Act, “reverse charge” means the liability to pay tax by the recipient of supply of goods or services or both instead of the supplier of such goods or services or both in respect of notified categories of supply.

 

U/s 9(3) of the CGST Act and u/s 5(3) of the IGST Act, there are certain goods and services with respect to which GST is always payable by the buyer of such goods and services.

 

U/s 9(4) of the CGST Act, The Government may, on the recommendations of the Council (i.e. the Goods and Services Tax Council established under article 279A of the Constitution), by notification, specify a class of registered persons who shall, in respect of supply of specified categories of goods or services or both received from an unregistered supplier, pay the tax on reverse charge basis as the recipient of such goods or services or both, and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to such supply of goods or services or both.

 

Class of registered recipients of specified goods and services and the categories of specified goods and services notified by the Government u/s 9(4) of the CGST Act are:

Registered recipients of specified goods and services	Categories of specified goods and services
Promoter	Specified goods and services [other than services by way of grant of (i) development rights, (ii) long term lease of land, (iii) Floor Space Index (FSI), and (iv) additional FSI] required for construction of project.
Promoter	Cement required for construction of project.
Promoter	Capital goods required for construction of project.

 

Time of payment of GST

Normally GST is payable when supply is made or when payment is received, whichever is earlier in case of supply of service, and when supply is made in case of supply of goods. GST of current month is payable by 20^th day of the following month (by 18^th day of the month following the quarter under composition scheme).

 

Composition scheme (Section 10 of the CGST Act, 2017)

Under composition scheme a taxable person is not required to maintain elaborate records and file detailed returns. Such a person (Seller/Supplier) is not allowed to charge GST in his Invoice although he will have to pay GST on his total turnover out of his own pocket at the rates as given in the following table:

 

      Rates of GST under Composition Scheme

Type of business	Rate of GST
If he is a manufacturer	1%
If he is a trader	1%
If he is a provider of restaurant service	5%
If he is a provider of any service other than restaurant service	6%

 

Any dealer registered under Composition Scheme will not be eligible to take credit of Input Tax on purchases at the time of paying output GST on his supply of goods. Also, the buyer of these goods will not get the credit of input taxes paid on such goods at the time of paying his output GST.

 

A registered person can opt for a composition scheme if his aggregate turnover in the preceding financial year did not exceed –

Case	Limit
If the registered person is engaged in supply of goods and/or restaurant service	Rs 1.5 Crore (This limit is Rs 75 Lakh for the following states: 1. Arunachal Pradesh, 2. Manipur, 3. Meghalaya, 4. Mizoram, 5. Nagaland, 6. Sikkim, 7. Tripura, and 8. Uttarakhand).
If the registered person is engaged in supply of service other than restaurant service	Rs 50 Lakh

 

As per Section 10(3) of the CGST Act, 2017 the option availed of by a registered person for composition scheme shall lapse with effect from the day on which his aggregate turnover during a financial year exceeds the threshold limit.

 

As per Section 10(2) of the CGST Act, 2017 the benefit of composition scheme shall not be granted if a taxable person is:

      1)     Engaged in the supply of other services along with supply of goods and/or restaurant service                   where turnover of such other services exceeds higher of the following two:

(a)    10% of turnover in a State or UT in the preceding financial year, and

(b)    Rs 5,00,000;

2)       Engaged in the making any supply of goods or services which are not taxable under GST;

3)       Engaged in making any inter-state outward supplies of goods or services;

4)       Engaged in making any supply of goods or services through an e-commerce operator who is required to collect tax at source u/s 52;

5)       Either a casual taxable person or a non-resident taxable person;

6)       A manufacturer of

(a)    Ice cream and other edible ice, whether or not containing cocoa; or

(b)    Pan masala; or

(c)     Tobacco and manufactured tobacco substitutes; or

(d)    Aerated water; or

(e)    Fly ash bricks, fly ash aggregate with 90% or more fly ash content; or

(f)      Fly ash blocks; or

(g)    Bricks of fossil meals or similar siliceous earth; or

(h)    Building bricks; or

(i)      Earthen or roofing tiles.

 

Form and manner of submission of return and payment of GST under the Composition Scheme u/s 10 of the CGST Act, 2017 [Rule 62]

A person opting for composition scheme is required –

(a)    To file GST Return annually for every financial year (or part of the financial year), on or before 30^th April following the end of such financial year;

(b)    To make payment of self-assessed GST quarterly for every quarter (or part of the quarter), by 18^th day of the month succeeding such quarter

 

Aggregate turnover as per Section 2(6) of CGST Act, 2017:

The term “aggregate turnover” means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis), exempt supplies, exports of goods or services or both and inter-state supplies of persons having the same Permanent Account Number (PAN), to be computed on all India basis but excludes central tax, state tax, union territory tax, integrated tax and cess.

Aggregate turnover includes	Aggregate turnover excludes
The value of exported goods or services or both.	The value of inward supplies on which the recipient is required to pay the tax under Reverse Charge Mechanism (RCM).
The value of exempted supply of goods or services or both which attracts nil rate of tax or wholly exempt from tax and includes non-taxable supply.	(a)       Central tax (CGST), (b)      State tax (SGST), (c)       Union territory tax, (d)      Integrated tax (IGST), and (e)    Cess
The values of inter-state supplies between persons having the same PAN (i.e. stock transfer between branches, etc.)	The value of exempt supply of services provided by way of extending deposits or loans or advances in so far as the consideration is represented by way of interest or discount.

 

Important points:

i.          The turnover will be computed PAN-wise.

ii.        The partner and partnership firm will have different PAN Nos. Thus the turnover of the partner and partnership firm will not be aggregated.

iii.        The HUF and individual coparcener of the family have different PAN Nos. Hence, turnover of Karta of HUF in his individual capacity and turnover of Karta as a Karta of HUF will not be aggregated.

iv.        Supply of goods, after completion of job work, by a registered job worker shall be treated as the supply of goods by the principal referred to in Sec. 143 of the CGST Act, 2017, and the value of such goods shall not be included in the aggregate turnover of the registered job worker. It will be included in the turnover of principal.

 

 

    Aggregate turnover

Particulars	Rs
Value of all taxable supplies of goods and services pertaining to intra-state and inter-state trading activities	×××
ADD: Value of all exempt supplies	×××
ADD: Value of all exported goods and services	×××
ADD: Value of all stock transfers between branches, etc. (if not included above)	×××
LESS: Value of all inward supplies on which tax is payable by a person on reverse charge basis	(×××)
LESS: Output CGST, SGST, IGST and Union Territory Tax	(×××)
LESS: GST Compensation Cess	(×××)
LESS: The value of exempt supply of services provided by way of extending deposits or loans or advances in so far as the consideration is represented by way of interest or discount	(×××)
Aggregate turnover	×××

 

Example: 1

A of Kolkata sells goods to B of Siliguri for Rs 59,000 including 18% GST and B sells the same to C of Patna after adding 12% mark-up and 18% IGST. Calculate turnover and GST payable for both A and B.

 

Solution:

A’s Turnover and GST Payable

Particulars	Rs
Invoice value of taxable supplies under SGST	59,000
LESS: Output GST [Rs 59,000 × (18 ÷ 118)]	(9,000)
A’s turnover	50,000
GST Payable (Rs 50,000 × 18%)	9,000
SGST (Rs 50,000 × 9%)	4,500
CGST (Rs 50,000 × 9%)	4,500

 

B’s Turnover and GST Payable

Particulars	Rs
Cost of purchase excluding Input GST	50,000
ADD: Profit (Rs 50,000 × 12%)	6,000
B’s turnover	56,000
Output GST Liability (Rs 56,000 × 18%)	10,080
LESS: Input Tax Credit	9,000
Net GST Payable	1,080
IGST	540
CGST	540

 

 

         Illustration of computation of GST payable

Particulars	Dealer A	Dealer B	Dealer C	Consumer
	Rs	Rs	Rs	Rs
A buys from manufacturer ADD: GST @ 18% Total amount payable by A	10,000 1,800 11,800
B buys from A (A sells at 10% mark-up) ADD: GST @ 18% Total amount payable by B		11,000 1,980 12,980
C buys from B (B sells at 15% mark-up) ADD: GST @ 18% Total amount payable by C			12,650 2,277 14,927
Retail customer buys from C (C sells at 12% mark-up) ADD: GST @ 18% Total amount payable by Consumer				14,168 2,551 16,719
GST Liability (Output GST) LESS: Input tax credit Net GST payable	1,980 1,800 180	2,277 1,980 297	2,551 2,277 274

 

 

Important points to be noted:

Total GST collected by the Government = 1,800 + 180 + 297 + 274 = Rs 2,551

Total GST paid by the consumer = Rs 2,551

The burden of GST to each of the manufacturer and dealers = Nil

 

 

     Input tax credit priorities

Particulars	IGST	CGST	SGST	Total
	Rs	Rs	Rs	Rs
Output GST (GST Liability)	×××	×××	×××	×××
LESS: Input GST (Input Tax Credit):
Input IGST credit (Priority-wise)	First	Second	Third	×××
Input CGST credit (Priority-wise)	Second	First	NA	×××
Input SGST credit (Priority-wise)	Second	NA	First	×××
Net GST payable	×××	×××	×××	×××

 

 

  Input Tax Credit – Important Points

1.   Input tax credit on capital goods can be availed at the time of capitalisation of the capital goods in the books of accounts.

2.   Input tax credit of one State cannot be used to set off output GST liability of another State.

3.   A supplier cannot take Input Tax Credit of GST paid on goods or services used to make supplies on which the recipient is liable to pay tax under reverse charge mechanism.

4.   Recipient of supply of goods or service while paying GST under reverse charge mechanism is not eligible to avail the input tax credit. This is because any amount payable under reverse charge shall be paid by debiting the electronic cash ledger. In other words, reverse charge liability cannot be discharged by using input tax credit.

5.   After discharging reverse charge liability, credit of the same can be taken by the recipient of such goods or services at the time of paying his output GST, if he is otherwise eligible i.e. if such goods or services are used for his business or furtherance of his business.

6.   A person registered under the Composition Scheme is not eligible for input tax credit.

7.  A buyer of goods who buys such goods from a person registered under the Composition Scheme is also not eligible for input tax credit at the time of selling of such goods and paying his output GST on such goods.

8.   Input tax credit is not available on exempt supplies. But input tax credit is available on goods and services for which applicable GST rate is 0%. Examples of goods and services for which GST rate is 0% are:

a)      Export goods and services,

b)      Supply of goods and services to Special Economy Zone.

9.  Input tax credit is available as soon as inputs of goods and services are received. In other words, there is no need to wait for taking input tax credit till these inputs are actually used in production. In practice, entire input tax credit forms a common pool which is used as adjustment at the time of paying the output GST liability as and when goods and services are sold.

 

  Conditions for taking input tax credit

1.  As per Section 16(1) of the CGST Act, 2017, a registered person is not entitled to take credit of the input tax charged to him on any supply of goods or services or both, if such goods or services or both are neither used nor intended to be used in the course or furtherance of his business.

2.   To take input tax credit the dealer should be registered under the GST Law.

3.   To avail the benefit of input tax credit the dealer should be in possession of a tax invoice or debit note or bill of entry issued by a registered supplier of goods or services or both.

4.   No input tax credit can be availed by a registered supplier in respect of any tax that has been paid in pursuance of any ‘order’ where any demand has been confirmed on account of any fraud, wilful miss-statement or suppression of facts.

5.   Input tax credit is available only if the registered dealer has actually received the goods or services or both.

6.   As per the first proviso to Section 16(2), where the goods against an invoice are received in lots or instalments, the registered person shall be entitled to take credit of input tax paid on such goods only upon receipt of the last lot or instalment.

7.   Input tax credit can be availed by the dealer only if the input tax has actually been paid to the Government by the supplier of goods/services either in cash or through utilisation of input tax credit as might be admissible to the supplier.

8.   Input tax credit is available to a registered person as soon as the goods or services are received by him. But a registered person shall not be entitled to take input tax credit in respect of any invoice or debit note for supply of goods or services or both after the date which is earlier of the following two dates:

a.   The 30^th November following the end of financial year to which such invoice or debit note pertains; or

b.   Actual date of filing the annual return in form GSTR–9 relating to the same financial year.

9.   Input tax credit on any inward supply of goods or services or both is available to a registered person, if he pays to the supplier of such goods or services or both the value of such supply along with the tax payable thereon within 180 days from the date of issue of invoice by the supplier. If the payment is not made within 180 days, the input tax credit, if already taken by the registered person on such inward supply of goods or services or both, shall be reversed.

10.   Where a registered dealer has claimed depreciation on GST component of the cost of capital goods and plant and machinery under the provision of Income Tax Act, 1961, the input tax credit with respect to the said GST component shall not be allowed to the said registered dealer u/s 16(3) of the CGST Act, 2017.

 

Example: 2

Dealer A buys a machine from B at a price of Rs 10, 00,000 + GST @ 18%. Therefore, total capitalised value of the machine = Rs 10, 00,000 + 18% of Rs 10, 00,000 = Rs 10, 00,000 + 1, 80,000 = Rs 11, 80,000. Here, Rs 1, 80,000 is the input GST on the machine bought.

 

Option: 1

If Mr. A charges depreciation u/s 32 of the Income Tax Act, 1961 @ 15% of the capitalised value of the machine, total depreciation charged = Rs 11, 80,000 × 15% = Rs 1,77,000, which includes depreciation on the GST component of the capitalised value of the machine = Rs 1,80,000 × 15% = Rs 27,000. Therefore, in this case, Mr. A shall not be entitled to take input tax credit of the input GST paid Rs 1, 80,000 on the machine bought.

 

Option: 2

On the other hand, if Mr. A charges depreciation @ 15% u/s 32 of the Income Tax Act, 1961 on the purchase price of the machine only, total depreciation charged = Rs 10,00,000 × 15% = Rs 1,50,000. In this case, Mr. A shall be entitled to take the input tax credit of the input GST paid Rs 1, 80,000: Credit of input CGST Rs 90,000 and credit of input SGST Rs 90,000.

 

  Apportionment of input tax credit [Section 17]

1.   Where the input goods/services are used by the registered person partly for the business purpose and partly for other purposes, the input tax credit shall be restricted to so much of the input tax as is attributable to the inputs used for the business purpose.

2.   Where the input goods/services are used by the registered person partly for affecting taxable output goods/services including zero-rated supplies and partly for affecting exempt output goods/services, the input tax credit shall be restricted to so much of the input tax as is attributable to the inputs used for the taxable output goods/services including zero-rated supplies.

Example: 3

Mr. M. P. Agarwal, a registered person, provides the following information for the month of March, 2022:

Particulars	Rs
Input tax in respect of inward supply	2,00,000
Taxable outward supply (excluding zero-rated supply)	10,00,000
Export i.e. zero-rated supply	5,00,000
Exempt outward supplies	3,00,000
Outward supplies on which the recipient is liable to pay tax on reverse charge basis	2,00,000

 

In this case, ITC available to Mr. Agarwal shall be calculated as follows:

Particulars		Rs
Taxable outward supply (excluding zero-rated supply)		10,00,000
Export i.e. zero-rated supply		5,00,000
Exempt outward supplies		3,00,000
Outward supplies on which the recipient is liable to pay tax on reverse charge basis		2,00,000
Total outward supply	A	20,00,000
Total taxable outward supply including zero-rated supplies [Rs 10,00,000 + Rs 5,00,000]	B	15,00,000
Input tax in respect of inward supply	C	2,00,000
ITC available for the month of March, 2022 [C × B/A]		1,50,000

 

Example: 4

M/s Munot Industries Limited has given the following information for the month of May, 2022:

	Particulars	Rs
1	Total input tax credit (ITC) on inputs and input services	2,00,000
2	ITC (out of total ITC as in Sl. No. 1) attributable exclusively for non-business purposes	20,000
3	ITC (out of total ITC as in Sl. No. 1) attributable exclusively for effecting exempt supplies	20,000
4	ITC (out of total ITC as in Sl. No. 1) in respect of inputs on which credit is not available u/s 17(5)	10,000
5	ITC (out of total ITC as in Sl. No. 1) attributable exclusively for effecting taxable supplies (including zero-rated supplies)	1,00,000
6	Total turnover	40,00,000
7	Aggregate value of exempt supplies	10,00,000

 

a) State the quantum of common credit.

b) State the amount of ITC to be reversed as per Rule 42.

In this case, quantum of common credit and amount of ITC with respect to the exempt supplies to be reversed for the month of May, 2022 shall be calculated as follows:

Particulars		Rs
Total input tax credit (ITC) on inputs and input services	T	2,00,000
ITC (out of total ITC as in Sl. No. 1) attributable exclusively for non-business purposes	T1	20,000
ITC (out of total ITC as in Sl. No. 1) attributable exclusively for effecting exempt supplies	T2	20,000
ITC (out of total ITC as in Sl. No. 1) in respect of inputs on which credit is not available u/s 17(5)	T3	10,000
Total	T1 + T2 + T3	50,000
ITC credited to Electronic Credit Ledger	C1 = T – (T1 + T2 + T3)	1,50,000
ITC (out of total ITC as in Sl. No. 1) attributable exclusively for effecting taxable supplies (including zero-rated supplies)	T4	1,00,000
Common Credit	C2 = C1 – T4	50,000
Aggregate value of exempt supplies	E	10,00,000
Total turnover	F	40,00,000
Proportion of common credit not allowed	D1 = C2 × E/F	12,500
5% of common credit not allowed	D2 = C2 × 5%	2,500
ITC to be reversed out of common credit	D1 + D2	15,000
Net ITC available after reversal	C1 – (D1 + D2)	1,35,000

 

Indirect Taxation

GST Problems

 

Illustration: 1

M/s X Ltd. being a registered person supplying taxable goods in the following manner:

Particulars	Rs
Intra-State supply of goods	18,00,000
Inter-State supply of goods	13,00,000
Intra-State purchases	13,00,000
Inter-State purchases	1,50,000
ITC at the beginning of the relevant tax period:
CGST	1,30,000
SGST	1,30,000
IGST	1,70,000

 

1.       Rate of CGST, SGST and IGST is 9%, 9% and 18% respectively.

2.       Inward and outward supplies are exclusive of taxes.

3.       All the conditions necessary for availing the input tax credit have been fulfilled.

 

Compute the net GST payable by M/s X Ltd during the tax period. Make suitable assumptions.

 

Illustration: 2

Mr. A has output Tax Liability of Rs 1, 00,000 towards CGST & SGST/UGST, Rs 20,000 towards IGST and Rs 1,800 towards interest payable. Explain the manner of discharge of tax liability by Mr. A in the following two independent cases:

1.       Input tax credit available of CGST & SGST is Rs 25,000 each & IGST is Rs 25,000; and

2.       Input tax credit not available

 

 

 

Illustration: 3

Y Ltd. is operating in two states Andhra Pradesh and Tamil Nadu. The tax liability for the month of August, 2022 is as follows:

Sl. No.	Tax Liability	Andhra Pradesh (Rs)	Tamil Nadu (Rs)
1	Output CGST Payable	25,000	10,000
2	Output SGST Payable	10,000	5,000
3	Output IGST Payable	3,000	2,500
4	Input CGST	8,000	13,000
5	Input SGST	15,000	1,500
6	Input IGST	12,000	16,000

 

Calculate the tax payable for the month of August, 2022.