Adjustment of Credit in Case of CGST SGST IGST From 1 Feb 2019

Here we will discuss changes/amendment made in GST Adjustment from  1 Feb ,how IGST Credit will be adjusted with CGST SGST Liability

(If there is IGST Credit and CGST SGST Output)

Till 31st Jan 2019

In this case,First Output CGST will be adjusted with Input CGST

If any Balance left, it will be adjusted with IGST Credit

FROM 1 FEB 2019

In this case,First Output CGST will be adjusted with  IGST Credit

Then we will adjust Output SGST with  IGST Credit

After that we will use Input CGST and Input SGST

Sequence will be as follows

Output IGST can be adjusted with Input GST in the following order

1. Input IGST  if any
2. Input CGST if any
3. Input SGST  if any 

Examples 

In books of a Delhi Shopkeeper

Goods Purchased from Punjab

Answer

Adjustment of CGST and SGST Credit with IGST Sales

In this case,First Output CGST will be adjusted with Input CGST

If any Balance left, it will be adjusted in IGST

Similarly,

First Output SGST will be adjusted with Input SGST

If any Balance left, it will be adjusted in IGST

Sequence will be as follows

Output IGST can be adjusted with Input GST in the following order

1. Input IGST  if any
2. Input CGST if any
3. Input SGST  if any 

Note

There is no change in this adjustment from 1 Feb 2019

Examples

Q 8

In books of a Delhi Shopkeeper

Goods Purchased from Delhi Plastic Bottles

Suppose 1000 pcs Sold to Chennai Buyer at 30 per kg
Also 2000 pcs sold in Delhi @ 40 per kg

Make Sales Bills

Make GST Computation

Examples

In books of a Delhi Shopkeeper

Goods Purchased from Delhi Plastic Bottles

Whole Stock of 5000 pcs Sold to Chennai Buyer at 30 per kg

Make Sales Bill

Make GST Computation

Example

In books of a Delhi Shopkeeper

Goods Purchased from Delhi Plastic Bottles

Suppose 3000 pcs Sold to Chennai Buyer at 30 per kg

Make Sales Bill

Make GST Computation

Q 7

In books of a Delhi Shopkeeper

Goods Purchased from Delhi Plastic Bottles

Suppose 1000 pcs Sold to Chennai Buyer at 30 per kg

Make Sales Bill

Make GST Computation

CGST and SGST Cannot be Adjusted Against Each Other

CGST credit cannot be adjusted against SGST Payable.

Similarly, SGST Credit cannot be adjusted CGST Payable.

However, both can be adjusted against IGST Payable

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Sequence of Adjustment

Output IGST can be adjusted with Input GST in the following order

1. Input IGST  if any
2. Input CGST if any
3. Input SGST  if any 

Q 10

TYPE OF SALES

1.  LOCAL SALES

2.  LOCAL PURCHASES

Company had Opening Input of Service

• Tax - 20
• Vat - 110

Note:-

CGST and SGST Cannot be Adjusted Against Each Other

Hence,we have to carry forward SGST Credit OF 20

Also we have to pay CGST OF 140

We cannot adjust the two

Q 11

Solve last question assuming there is Interstate Sales and Purchases also as follows

INTERSTATE SALES

INTERSTATE PURCHASE

SUMMARY

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