Receipt of goods and services within State but supply of goods and services outside the State
Illustration – Value of supply of goods and services in inter-state- Rs 1,200. IGST rate on supply of goods and services is 20%. Value of receipt of goods and services within State – Rs 1,000. SGST and CGST rate on receipts is 10% each.
Details SGST CGST IGST
Tax payable on inter-state supply of goods and services of Rs 1,200 Nil Nil 240
Input tax credit of taxes paid on input goods and services of Rs 1,000 available in Electronic Credit Ledger 100 100
Net tax payable by cash by the dealer in Electronic Cash Ledger 40
The entire input tax credit of SGST and CGST can be utilized for payment of IGST on supply of goods and services.
SGST credit can be utilized for payment of IGST but not for payment of CGST.
Since the consumption of goods/services is outside the State, the State is not entitled to get any tax out of this transaction. Hence, the SGST utilized for payment of IGST will be debited by Central Clearing Agency to that State (the reason is that entire IGST quantum should be received by Centre).
Illustration – Value of supply of goods and services in inter-state- Rs 100. Value of supply of goods and services within State – Rs 1,100. IGST rate on supply of goods and services is 20%. Value of receipt of goods and services within State – Rs 1,000. SGST and CGST rate on receipts is 10% each.
Details SGST CGST IGST
Tax payable on inter-state supply of goods and services of Rs 100 20
Tax payable on intra-state supply of goods and services of Rs 1,100 110 110
Input tax credit of taxes paid on input goods and services of Rs 1,000 available in Electronic Credit Ledger 100 100
Net tax payable by cash by the dealer in Electronic Cash Ledger 10 10 20
Illustration – Value of supply of goods and services in inter-state – Rs 600. Value of supply of goods and services within State – Rs 600. IGST rate on supply of goods and services is 20% Value of receipt of goods and services within State – Rs 1,000. SGST and CGST rate on receipts is 10% each.
Details SGST CGST IGST
Tax payable on inter-state supply of goods and services of Rs 600 120
Tax payable on intra-state supply of goods and services of Rs 600 60 60
Input tax credit of taxes paid on input goods and services of Rs 1,000 available in Electronic Credit Ledger 100 100
Net tax payable by cash by the dealer in Electronic Cash Ledger Nil Nil 40
The excess credit of SGST and CGST can be utilized for payment of IGST.
Illustration – Value of supply of goods and services in inter-state- Rs 1,100. Value of supply of goods and services within State – Rs 100. IGST rate on supply of goods and services is 20%. Value of receipt of goods and services within State – Rs 1,000. SGST and CGST rate on receipts is 10% each.
Details SGST CGST IGST
Tax payable on inter-state supply of goods and services of Rs 1,100 220
Tax payable on intra-state supply of goods and services of Rs 100 10 10
Input tax credit of taxes paid on input goods and services of Rs 1,000 available in Electronic Credit Ledger 100 100
Net tax payable by cash by the dealer in Electronic Cash Ledger Nil Nil 40
The excess credit of SGST and CGST can be utilized for payment of IGST.
However, if SGST credit is utilized for payment of IGST, that amount will be debited by Central Clearing Agency to that State, as that State is not supposed to get any tax from this transaction.
Illustration – Value of supply of goods and services in inter-state- Rs 600. Value of supply of goods and services exported – Rs 600. IGST rate on supply of goods and services is 20%. Value of receipt of goods and services within State- Rs 1,000. SGST and CGST rate on receipts is 10% each.
Details SGST CGST IGST
Tax payable on inter-state supply of goods and services of Rs 600 120
Tax payable on exports of Rs 600
Input tax credit of taxes paid on input goods and services of Rs 1,000 available in Electronic Credit Ledger 100 100
Net tax payable by cash by the dealer Nil Nil Nil
The credit of SGST of Rs 20 and CGST of Rs 100 can be utilized for payment of IGST. This is because credit of IGST, CGST and SGST is required to be used in that sequence.
Thus, there will be excess credit of SGST of Rs 80 in Electronic Credit Ledger, which can be carried forward.
If it cannot be utilized, refund can be obtained.
Central Clearing Agency will debit Rs 20 to the State.