Question

Do you pay GST on taxable supplies and can you claim GST credits for purchases associated with taxable supplies?

Answer 1

Yes,we are required to pay GST on all taxable supplies and we able to claim input on goods when good are sold because final consumer bear the taxes under GST regime.

Goods and Services Tax is a biggest indirect tax reform. GST is single tax on the supply of goods and services. It is a destination based tax. GST will subsumed Central Excise Law, Service Tax Law, VAT, Entry Tax, Octroi, etc.

Supply involves transfer, exchange, barter,sale,license, rental, lease and disposal. If a person undertakes either of these transactions during the course or furtherance of business for consideration are in the definition of supply under GST.

“Taxable supply” means a supply of goods or services or both which is leviable to tax under CGST Act, 2017.

Taxable supply involves Taxable supply,exempted supply,non taxable supply,zero rated supply under GST.

Full Fill all the requirements before taking input :

• You Have to Issue a Invoice or debit note by registered dealer
• Goods Or Service Received
• Tax Charged On Deposit has to be submitted
• Supplier has filed GST Return

Procedure of taking input tax credit:

1) Three Type of taxes under GST

• IGST
• CGST
• SGST

2) TO PAY IGST : First take Input from IGST,Then We adjust From CGST and Then SGST.

TO PAY CGST :First take Input from IGST,Then We adjust From CGST.

  TO PAY SGST : First take Input from IGST,Then We adjust from SGST.

Note: CGST & SGST Cannot be used for Each Others.

Example:

HEAD Output Laibility Input Tax Credit Avilable Paid Through ITC Paid Through Cash

CGST    Rs.800 CGST-200, IGST-700   IGST-700, CGST-100 0

SGST Rs.1000 SGST-500, IGST-800 IGST-800,SGST-200 0

IGST RS.700 IGST-300,CGST-300 IGST-300,CGST-300 0

SGST-200 SGST-100