EXAMPLE

Assuming GST rate @18%, determine the methodology of payment of tax of a taxable Registered dealer

Outward supply = Rs.1 crore

Inward supply = Rs.70 lakh

Available balance in electronic credit ledger = 2 lacs as appeared in Form GST PMT-2

 

ANSWER

Taxable person shall upload outward supply detail then his Tax liability register (Form GST PMT-1) shall be debited by 18 lacs (return relates to liability).

The taxable person shall upload inward supply details then his electronic credit ledger ( Form GST PMT-2) shall be credited by 12,60,000 (70 lacs * 18%).

Now before filing of monthly return (or within such time as may be prescribed by the govt to pay tax) taxable person will calculate his tax liability and pay:

a)    Outward tax liability = 18 lac

b)    Credit available= 12,60,000 + 2,00,000 = 14,60,000

 Amount payable (a-b) = 3,40,000