Case 1:

For any of our services, if our Vendor is paying any GST amount, we will pay it to the Government
against the Vendor’s GST Number. In this case, we are the end user. And we don’t have any Profit or loss
in these transactions.

For ex: If we collect INR 300 from our vendors, and pay this INR 300 to government.

Vendors
CyberBahn Government

Case 2:

If we collect GST from our Vendors, and if there is a payment to our trainers, we will pay them with GST
amount. The trainer will pay the GST amount against the Cyberbahn’s GST Number. Balance will be paid
to Government. If there is no balance, no need to pay GST to government.

For ex: If we collect INR 300 from our vendors, and pay INR 100 to our trainer, then we will pay INR 200
to the government. This INR 100 will be pointed against our GST number, which can be claimed by our
vendors. If we pay INR 400 to our trainer, then we will get an Input Credit of INR 100 against our GST
number in government portal. We can claim this INR 100 for our next GST transactions.

Vendors
CyberBahn Trainers Government
Case 3:

If we don’t collect GST from our Vendors, and if there is a payment to our trainers, we will pay them
with GST amount. The trainer will pay the GST amount against the Cyberbahn’s GST Number. If we
don’t claim this GST amount in our account within next 3 months, the amount will go to the
government. Within this 3 month, we are eligible to claim this amount.

CyberBahn Trainers Government

Using GST, there is no profit or loss for the Manufacturer or Middleman, until there is a chain. The End-
users (Consumers, Students…) has to pay the GST amount to the government, which is a loss to them.

For companies like TCS, Knowledgehut… they will collect Input tax credit, they won’t have any loss.

Read more:

Web Explanation for Input Tax credit - https://www.deskera.com/blog/input-tax-credit/

Video Explanation for Input Tax Credit - https://www.youtube.com/watch?v=Jd8JfNUUwps