Accounting Entries Under GST
Accounting Entries Under GST
Accounting Entries Under GST
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Thus due to input tax credit, tax liability of Rs. 24,000 is reduced to only Rs. 5,280. Also, GST on
legal fees is also adjusted which was not possible in current tax regime.
If there had been any input tax credit left it would have been carried forward to the next year.
Example 2: Inter-state
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CGST 1,360
SGST 1,360
Any IGST credit will first be applied to set off IGST and then CGST. Balance if any will be
applied to setoff SGST.
So out of total input IGST of Rs. 24,000, firstly it will be completely setoff against IGST. Then
balance Rs.8,000 against CGST.
From the total Rs.40,000, only Rs. 13,280 is payable.
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4 Final payment
Rates taken of CGST, SGST and IGST are for illustrative purposes only.