Input Tax Credit.

In order to avoid the cascading effect (tax on tax), the concept of ITC has
been introduced.

The tax paid at the time of getting the supply of goods/services

(inward supply) is called input tax. Input tax is credited in the electronic
credit ledger maintained by the registered person. The amount available in
the electronic credit ledger at any point of time is called Input Tax Credit.
Tax collected by the supplier of goods/services from the recipient of
such goods/services is called out put tax/ out put tax liability.
 Out put tax liability of a particular month can be set off against the
Input Tax Credit available and the balance amount, if any only need to
be paid through electronic cash ledger.
The process of off setting the out put tax liability against the input tax
credit is called utilization of Input Tax Credit.
Utilization of ITC.
ITC is to be used to set off the output tax liability in the following order.
1) ITC on IGST= i) Out put tax liability on IGST,
ii) on CGST,
iii) on SGST, and balance if any
will be carried forward.
2) ITC on CGST= i) Output tax liability on CGST,
ii) on IGST, and balance if any
will be carried forward.
3) ITC on SGST = i) Output tax liability on SGST,
ii) on IGST, balance if any
will be carried forward.
4) ITC on UTGST= i) Out put tax liability on UTGST,
ii) on IGST, balance if any
will be carried forward.
Conditions/Provisions for ITC
1) Only registered persons can avail.
2) With respect of input supplies of goods/services which are used in the
course of furtherance of business of the person who wants to claim ITC.
3) It should be credited in the electronic credit ledger.
4) To avail ITC, the registered person should have any of the following
documents;
i)An invoice issued by the supplier of goods/services.
ii) An invoice is issued under RCM.
 iii) A debit note issued by the supplier.
iv) A bill of entry in the case of import.
5) ITC can be availed only if the goods/services are received.
6) ITC can be claimed for the whole value of goods received during a
month even if they are not yet sold.
7) No ITC can be claimed for goods used for free distribution.
8) No ITC on exempt supplies.
9) ITC is available for zero rated supplies such as export, supply to SEZ
Zone/developer.
 ITC on Capital goods.
Capital goods refer to the goods the value of which is capitalized in
the books of account and which are used or intended to be used in the
course or furtherance of business.
1) If GST paid on capital goods purchased is capitalized and
depreciation is claimed, then no ITC can be claimed.
2) If GST amount is not capitalized, ITC can be claimed.
3) If capital goods are used for manufacturing of exempt supplies or
used for non business purpose, No ITC.
 Note.
Goods returned with in six months will be deducted to find out the
value of both inward and outward supply.
Illustration 1
On August 20, 2020 X Ltd of Chennai supplied goods to Y ltd of
Madurai for Rs 2500000. On 28th August it also supplied goods to Z ltd
of Bangalore for Rs 500000.GST rate is 18%.On 1st August 2020, X Ltd
has the following balance in the electronic credit ledger.
IGST Rs 95000, CGST Rs 30000, SGST Rs 360000.
Find out the GST payable for the month of August 2020.
 Particulars Value IGST CGST SGST
1) Supply to Y ltd, Madurai. 2500000
CGST and SGST@9% each 225000 225000
2) Supply to Z Ltd, Bangalore. 500000
IGST @ 18% 90000
Outward supply and
Output tax liability 3000000 90000 225000 225000
Utilization of Input tax credit and net tax payable.
Particulars IGST CGST SGST
Output tax liability 90000 225000 225000
1) ITC on IGST 95000
Less used for IGST liability 90000 90000
Balance 5000 00
Less used for CGST liability 5000 5000
Balance 00 220000
2) ITC on CGST 30000
Less used for CGST liability 30000 30000
Balance 00 190000
3) ITC on SGST 360000
Less used for SGST liability 225000 225000
Balance ITC on SGST C/F 135000
Net Tax Payable 00 190000 00
2)Following are the details of supplies of a manufacturing company in Bangalore during the month of
March2020. Find out the GST payable through electronic cash ledger after utilizing the ITC, if any.
ITC balance in electronic credit ledger as on 1st March;
IGST Rs 40000, CGST Rs 90000, SGST Rs 87000.
Inward supply of Goods/Services are as follows;
i) Supply of raw material from A Ltd Chennai Rs 400000, GST at 12%.
ii) Supply of raw materials from B Ltd Mysore Rs 300000,GST at 5%.
iii) Packing materials received from Packing solutions Ltd Bangalore, Rs Rs 60000 GST 18%.
iv) Supply of Raw materials from Ab Ltd Cochin Rs 240000, GST at 12%.
v) Rent of Bangalore factory Rs 75000 GST @18%.
 vi) Consultancy fee paid to Chennai registered Chartered Accountant
Rs 40000, GST @ 18%.
vii) Refrigerator from Croma Stores Bangalore, for the employees use Rs
75000 GST @ 28%.
viii) Purchase of machinery from Mumbai, Rs 300000 GST @ 12%.
Outward supplies.
i) Supply to XY Ltd Chennai 1000000 GST @ 18%.
ii) Supply to PQ Ltd , Mangaluru, Rs 500000 GST @ 18%.
iii) Export supply to Dubai, Rs 300000 GST @ 18%.
 Inward supply and input tax credit.
Particulars Value IGST CGST SGST
i) From A Ltd, Chennai @12% 400000 48000 - -
ii) From BLtd, Mysore @ 12% 300000 - 18000 18000
iii) From AB Ltd,Cochin @ 12% 240000 28800 - -
iv) Packing Material @ 18% 60000 - 5400 5400
v) Rent of factory,@18% 75000 - 6750 6750
vi) Consultancy fee @18% 40000 7200 - -
vii) Refrigerator @28% 75000 - 10500 10500
viii) Machinery from Mumbai@12%300000 36000 - -
ix) ITC balance on 1st march 40000 90000 87000
x) Total Input Tax credit available 160800 130650 127650.
 Out ward supply and output tax liability.
Value IGST CGST SGST
i) To XY, Chennai @ 18% 1000000 180000 - -
ii) To PQ,Mangalore @ 18% 800000 - 72000 72000
iii) Export supply – Zero rate. 300000 - - -
Out put tax liability 180000 72000 72000.
Utilization of I T C
Amt. IGST CGST SGST
Out put tax liability 180000 72000 72000
1) ITC on IGST 160800
Less used for IGST liability 160800 160800
0 19200
2) ITC on CGST 130650
Less used for CGST liability 72000 72000
58650 0
Less used for IGST liability 19200 19200
Balance ITC on CGST C/F 39450 0
 Amt. IGST CGST SGST
3) ITC on SGST 127650
Less used for SGST liability 72000 72000
Balance ITC in SGST C/F 55650 0
GST payable through Electronic Cash Ledger 0 0 0
Illustration 3
From the following details, compute the ITC eligible on inputs.
1) Raw material A purchased within the state Rs 400000, GST 5%.
2) Raw material B purchased from local market Rs 300000, GST 12%.
3) Raw material C purchased from outside state Rs 50000, GST 5%.
4) Raw material B purchased locally from an URD Rs 50000,GST 12%.
5) Raw material D purchased locally from a dealer who opted for composition scheme Rs
200000, GST 1%.
6) Raw material B purchased from other state Rs 90000,GSt 12%.
7) Raw material E imported from USA Rs 550000, GST 12%.
8) Out of material A Rs 40000 were returned.
 Calculation of transaction value and ITC.
Particulars Value IGST CGST SGST
1) R M, A purchased locally @ 5% 400000 10000 10000
2) RM, B @ 12% 300000 18000 18000
3) RM, C @ 5% from outside state. 500000 25000
4) RM, from URD 0 0 0 0
5) RM, D under composition scheme. 0 0 0 0
6) R M, B @ 12% 90000 10800
7) RM imported @ 12% 550000 66000
Less RM, A returned @ 5% (40000) (1000) (1000)
Transaction Value/ Input Tax Credit. 1800000 91800 27000 27000
Note; Inputs supply from URD and from composition dealer not to be considered. Import of goods is always IGST.
Illustration 4
Compute the GST payable from the following details of a dealer in Bangalore.
1) Raw material imported Rs 600000 @ 12%
2) R M purchased from Chennai, Rs 300000@ 12%.
3) R M purchased locally, Rs 500000 @ 12%.
Processing cost is 30%.
25% of the output is exported and another 25% is sold to a SEZ in Bangalore
and 20% sold locally and the balance to other states. GST @ 18%. For exports
profit margin is 100%, SEZ supply 30% margin and others at 20% margin.
Inward supply and ITC.
Value IGST CGST SGST
1) Raw material imported @12% 600000 72000
2) RM from other states @12% 300000 36000
3) RM from local suppliers @ 12% 500000 30000 30000
1400000 108000 30000 30000.
 Inward supply 1400000
Add; Processing cost @ 30% 420000
Cost of sales 1820000.
1) Value of export = 1820000x25/100x200/100= 912500.
2) Value of SEZ supply = 1820000x25/100x130/100= 593125.
3) Local supply = 1820000x20/100x120/100= 438000.
4) To other states = 1820000x30/100x120/100= 657000.
Outward supply and out put tax liability.
Value IGST CGST SGST
1) Export @ Zero rate 912500 0
2) To SEZ @ Zero rate 593125 0
3) Local supplies @ 18% 438000 39420 39420
4) Other states @ 18% 657000 118260.
Utilization of ITC.
Amt. IGST CGST SGST
Output tax liability 118260 39420 39420
1) ITC on IGST 108000
Less used for IGST liability 108000 108000
0 10260
2) ITC on CGST 30000
Less used for CGST liability 30000 30000
0 9420
3) ITC on SGST 30000
Less used for SGST liability 30000 30000
Net GST payable 10260 9420 9420.
 Illustration 5
X Ltd, purchases a machinery from A Ltd, and installed on Feb.6th 2020.
The value of supply is Rs 1000000 and GST @18%. X L td, capitalised the
machinery at Rs 1180000 including the GST. Can X ltd claim ITC for the
amount of Rs 180000.
Ans. a) When the GST amount is capitalized along with the value of
machinery, then depreciation can be claimed for the whole amount and
therefore no ITC is allowed.
b) If the machinery is capitalized only with the value of Rs 1000000, then
for the GST paid, ITC can be claimed.
Sale of capital goods on which input tax credit has taken.
When a capital asset for which ITC is claimed and sold out later, then the ITC should be reversed. The
provisions are as follows.
1) The tax payer is registered under GST.
2) He has availed ITC at the time of inward supply of capital goods.
3) Subsequently this capital goods are supplied to another person.
4) ITC will have to be reversed as follows,
5) ITC availed minus ITC relating to the number of Quarters or part there of the asset is used before its
transfer (Life of the asset is 60 months/20 qtrs.)
6) GST on the present supply,
Whichever is higher.
 X Ltd, is a registered manufacturer, purchased a machinery for Rs
1000000 plus GST @ 28% on 20th July 2019. It availed ITC in July itself.
On April 5th 2020, X Ltd transfers the machine for Rs 800000 to Y Ltd,
GST @ 18%. What is the amount of ITC reversal.
Ans.
Date of purchase 20th July 2019.
Date of supply to Y Ltd April 5th 2020.
Number of qtrs. Machine used is 4
Life of the asset as per the law 20 qtrs.
ITC claimed 1000000x28/100 = 280000
Less ITC for the 4 qtrs 280000x 4/20 = 56000
1) ITC reversal 224000
2) GST on the supply to Y Ltd 800000x18/100 = 144000
whichever is higher is to be reversed.
So Rs 224000 is to be reversed. On the supply to Y Ltd, GST payable is
Rs 224000.
 Illustration 6
X Ltd is located in Bangalore, manufacture and trading in electronic
items. On December 1st electronic credit ledger has the following
balance. IGST 12600, CGST 17500, SGST 18000.
The GST relating to the outward supply during December 2020 is as
follows,
1) Supply of 1000 units to Kolkata, IGST Rs 18000.
2) Supply of 8000 units to Mumbai, IGS Rs 30000.
3) Supply of 9000 units in Bangalore, CGST Rs 150000, SGST Rs 150000.
Details of inward supplies.
1) Raw material A from Cochin, IGST Rs 6000.
2) Raw material B from Chennai, IGST Rs 58000.
3) Raw material C from Bangalore, CGST Rs 87000, SGST Rs 87000.
4) 120 units of dinner sets for the distribution as new year gift to dealers and
employees, IGST Rs 112000.
5) 50% of raw material A is used for manufacture of goods for free distribution
as samples.
6) X Ltd spend Rs 40000 for the repair of the building, GST @ 18%.
7) Calculate the GST payable through electronic cash ledger.
 Output Tax liability.
IGST CGST SGST
1) To Kolkata 18000
2) To Mumbai 30000
3) In Bangalore 150000 150000
48000 150000 150000
Calculation of Input Tax Credit.
IGST CGST SGST
1) Raw material from Cochin 3000
(50% used for free distribution)
2) Raw material B from Chennai 58000
3) Raw material C, local purchase 87000 87000
4) No ITC for inward supply used for
free distribution. 0 0 0
5)Repair of factory building 3600 3600
6) Opening balance of ITC 12600 17500 18000
Total Input Tax Credit 73600 108100 108600
Utilization of ITC.
IGST CGST SGST
Out put tax liability 48000 150000 150000
1) ITC on IGST 73600
Less used for IGST liability 48000 48000
Balance ITC on IGST 25600 0
Less used for CGST liability 25600 25600
0 124600
2) ITC on CGST 108100
Less used for CGST liability 108100 108100
0 16300.
3) ITC on SGST 108600
Less used for SGST liability 108600 108600
GST payable 0 0 16300 41400
 Illustration 7
X Ltd is a manufacturing unit in Bangalore. Find out the GST payable for January 2021.
1) Balance available in electronic credit ledger;
IGST Rs 22000, CGST Rs 38000, SGST Rs 38000.
2) Purchase of raw material A from Chennai, Rs 2000000 GST @ 12%.
(20% of the material is used for manufacturing goods which are exempted from tax and 80% is not
used in January.
3) Purchase of raw material B from Bangalore Rs 50000 GST @ 18%. These materials are used for
producing goods to be distributed as gift to dealers and customers.
4) Purchase of raw material from Mumbai for Rs 3000000 @ 18% GST. The materials are not used in
January.
5) Purchased machinery from Bangalore for Rs 1500000 @ 18% GST on 15th April 2019 and was sold
in Bangalore on 25th January 2021 for Rs 900000 @12% GST.
5) Value of outward supply to Cochin Rs 4000000 @ 18%.
6) Value of outward supply to Mumbai Rs 3000000 @ 18%.
7 Value of supply to Mangalore SEZ unit Rs 600000 @ 18%.
 Calculation of ITC for the month of January 2021.
Value IGST CGST SGST
1) Opening balance 22000 38000 38000
2) RM from Chennai @ 12%
2000000x80/100 1600000 192000
( RM used for exempt supplies
No ITC)
3) No ITC for free distribution 0 0 0
4)RM from Mumbai @ 18% 3000000 540000
50Machinery from Bangalore @ 18% 135000 135000
754000 173000 173000
 Out ward supplies and out put tax liability
Value IGST CGST SGST
1) To Chennai @18% 4000000 720000
2) To Mumbai @18% 3000000 540000
3) To SEZ unit @0 rate 600000 0 0
4) Machinery sold @ 12% 54000 54000.
( 900000x6/100)
1260000 54000 54000
Utilization of ITC.
IGST CGST SGST
Out put tax liability 1260000 54000 54000
1) ITC on IGST 754000
Less used for IGST 754000 754000
0 506000
2) ITC on CGST 173000
Less used for CGST 54000 54000
119000 0
Less used for IGST 119000 119000
0 387000.
2) ITC on SGST 173000
Less used for SGST 54000 54000
119000 0
Less used for IGST 119000 119000
Net GST payable 0 268000. 0 0
Illustration 8
Mr. X is a registered person in Hyderabad, is in the business of supply of labour and renting of
generators. Details for the month of February 21.
1) Supply of labour for the farms of BLtd for Rs 100000.
2) Supply of labour for the factory of C Ltd, Rs 1200000.
3) Supply of labour for domestic work, Rs 30000.
4) To a construction company, Rs 600000.
5) Renting of generators for using in farms, Rs 80000.
6) Renting of generators for domestic work, Rs 60000.
7) Renting of generators to a relative for his factory, Rs 15000 market value is Rs 60000.
GST rate is 18%. All supplies are made with in the state. Opening balance in the electronic
credit ledger; CGST Rs 55000SGST Rs 45000. Find out the GST payable.
Calculation of outward supply and out put tax liability.
Value CGST SGST
1)Supply of labour for agriculture, No GST.
2)Supply to factory @ 18@ 1200000 108000 108000
3) Supply for domestic work @ 18% 30000 2700 2700
4) To a construction Company @ 18% 600000 54000 54000
5) Renting of generators for Agri, No GST.
6) Generators for domestic work @ 18% 60000 5400 5400
7)To a relative for his factory,Market value.60000 5400 5400
175500 175500
Utilization of ITC.
CGST SGST
Out put tax liability 175500 175500
1) ITC on CGST 55000
2) ITC on SGST 45000
GST payable 120500 130500.
Illustration 9
Mr X is a chartered accountant in Bangalore, gives the following details for the
month of January 2021.
1)Consultancy given to different clients in Karnataka, Rs 3500000.
2)Consultancy given to A Ltd Chennai Rs 70000.
3)Consultancy given to B, invoice value Nil, market value Rs 48000, B is not a relative
of Mr X.
4)Consultancy given to Mrs.X , invoice value Nil, market value Rs 30000, Mrs. X is not
dependent on Mr.X
5)Consultancy given to Mr.C, younger brother of Mr.X invoice value nil, market value
Rs 25000, C is dependent on Mr.X
6)Consultancy to Mr D, the elder brother, invoice value nil, market value Rs 50000, D is
not dependent on X.
7)Consultancy given to PQ Ltd Mumbai, Invoice value Rs 50000, market value Rs
180000. Mr X has substantial interest in PQ Ltd.
GST rate 18% for all services.
8)GST paid on food and beverages for employees and clients in Bangalore Rs 16000.
9)Motor car purchased for office use, GST Rs 280000.
10)Membership of a club taken mainly for official purpose, GST paid Rs 90000.
11) Fees paid to an advocate for consulting some legal points with respect to a
client ,GST paid Rs 18000.
Find out the net GST payable for the month of January 2021.
Calculation of Inward supply and Input Tax Credit.
IGST CGST SGST
1)Food and beverages for employees.
(No ITC available)
2)Motor car purchased 140000 140000
3)Club membership fee.(No ITC)
4)Fees to an advocate for legal consultation 9000 9000.
149000 149000
Outward supply and out put tax liability.
Value IGST CGST SGST
1)Consultancy to different clients 3500000 315000 315000
2)To A Ltd. Chennai 70000 12600
3)To Mr B, not a relative,
Transaction value Nil 0
4)Mrs. X, related person, independent
Market value. 48000 4320 4320
5)Mr.C, dependent, transaction value nil 0
6) Mr.D, relative independent,
market value. 50000 4500 4500
7)To PQ Ltd, related person, market value180000 32400
45000 323820 323820.
Utilization of ITC.
IGST CGST SGST
Out put tax liability 45000 323820 323820
1) ITC on IGST 0
2) ITC on SGST 149000 149000
Net GST payable 45000 174820 174820.
Illustration 10
X&Co is a partnership firm registered under GST in Kerala is in the manufacture of coconut
oil and also gives technical consultancy in this area. Transactions during the month of
December 2020.
1)Supply of coconut oil to different dealers in Kerala, Rs 4500000, GST @12%.
2)Consultancy given to A Ltd, Mangalore Rs 400000,GST 18%
3)Rent from commercial property in cochin, Rs 60000, GST18%.
4)An advance of Rs 300000 received from PQ Ltd, Mumbai in December for the supply of oil
in January 2021, invoice will be issued along with the supply.
5)An advance of Rs 236000 including 18% GST for providing consultancy to AB Ltd , Chennai
in the month of Feb.2021.
6) Purchase of Inputs (coconut) during December 2020 from registered
suppliers in Kerala Rs 700000 GST 5%.
7)Purchase of inputs from other states Rs 500000 GST 5%.
8)Purchase of office furniture from local supplier Rs 90000 GST 18%.
9)Electronic credit ledger balance on December 1st ,
IGST Rs 8000, CGST Rs 10000, SGST Rs 80000.

Find out the GST payable through electronic cash ledger.

Calculation of Input Tax Credit.
Value IGST CGST SGST
Opening balance of ITC 8000 10000 80000
1)Input supply from Kerala @ 5%.700000 17500 17500
2)Input supply from other states@ 5% 25000
3)Office furniture @ 18% 8100 8100
33000 35600 35600.
Outward supply and out put tax liability.
value IGST CGST SGST
1) To dealers in Kerala @ 12% 4500000 270000 270000
2) Consultancy to Mangalore @ 18% 400000 72000
3) Rent from building @ 18% 60000 5400 5400
4) Advance received for the supply of
goods. Not to be taken.
5)Advance for the supply of service 200000 36000
108000 275400 275400.
Utilization of ITC
IGST CGST SGST
Output tax liability 108000 275400 275400
1) ITC on IGST 33000
Less used for IGST liability 33000 33000
0 75800
2) ITC on CGST 35100
Less used for CGST liability 35100 35100
0 240300
3) ITC on SGST 105600
Less used for SGST liability 105600 105600
Net GST payable 0 75800 240300 169800.
 Illustration 11
X Ltd is in to manufacture of hand bags in Poona. Transactions during the
month of February 2020.
1)Supply of hand bags to different dealers in Maharashtra Rs 1740000.
2)Supply to dealers outside the state Rs 3000000.
3)Rent from residential building Rs 90000.
4)Rent from Chennai commercial building Rs 150000.
5) Gift of 5 hand bags to the relative of the manager. Input tax was availed for
the manufacture of these bags. Market value Rs 50000.
GST rate is 18% for both goods and services.
6)An advance of Rs 80000 was received from A Ltd, Chennai for the
supply to be made in April 2020. No invoice is issued.
7)Purchase of inputs from with in the state Rs 900000 @ 12%.
8)Purchase from other states Rs 600000 @ 12%.
Balance in the electronic credit ledger; IGST Rs 70000.
CGST Rs 230000, SGST Rs 90000.
Find out the net GST payable through electronic cash ledger.
 Calculation of inward supply and ITC
ValueIGST CGST SGST
Opening balance of ITC 70000 230000 90000
1)Input from with in the state @ 12% 900000 54000 54000
2)Input from other states @ 12% 600000 72000
1500000 142000 284000 144000
Out ward supply and output tax liability.
Value IGST CGST SGST
1)To dealers with in the state @ 18% 1740000 156600 156600
2)To other states @ 18% 3000000 540000
3)Rent from residential building
No GST.
4)Rent from commercial building@18% 150000 27000
5)Gift of bags, Since ITC claimed taxable
at the market value. 50000 4500 4500
567000 161100 161100
Utilization of ITC
IGST CGST SGST
Out put tax liability 567000 161100 161100
1)ITC on IGST 142000
Less used for IGST 142000 142000
0 425000
2)ITC on CGST 284000
Less used for CGST 161100 161100
112900 0
Less used for IGST 112900 112900
0 312100
3)ITC on SGST 144000
Less used for SGSt 144000 144000
GST payable 312100 0 17100
Illustration 12
Mr. X owns a garment whole selling unit in Mumbai, gives the following details for
the month of June 2020.
Input tax credit balance as on 1st June, IGST Rs 20000, CGST Rs 22000, SGST Rs 37000.
Sales of the month.
1)To A Ltd Kolkata, taxable value Rs 3000000 less 10% discount, GSt @ 12%.
2)To B Ltd Mumbai, taxable value Rs 800000 less 10% discount GST12%
3)To a dealer in Bangalore, Rs 3500000 less 10% discount, GST 12%.
4) 10 Garments are given to a friend free of cost. Input tax credit was availed on
these purchases. Sale price is Rs 7000 less 10% discount.
Inward supply.
1)From PLtd Chennai Rs 1600000 @ 5%.
2)From Q Ltd Mumbai Rs 300000@ 12%.
3)From R ltd Nasik, Rs 400000 @ 5%.
4)Rent of Mumbai store Rs 160000 @ 18%.
5)Rent of Mumbai godown Rs 60000 @ 18%.
6)Computer purchased Rs 120000 @ 18%.
Find out the GST payable for the month of June.
Calculation of inward supply and ITC.
Value IGST CGST SGST
Opening balance of ITC 20000 22000 37000
1)Input from P Ltd @ 5% 1600000 80000
2)From Q Ltd @5% 300000 7500 7500
3)From R ltd @ 5% 400000 10000 10000
4)Rent for the Mumbai store @ 18% 160000 14400 14400
5)Rent for godown @ 18% 60000 5400 5400
6)Computer purchased @ 18% 120000 10800 10800
100000 70100 85100
Outward supply and output tax liability.
Value IGST CGST SGST
1)To Kolkata @ 12 % 2700000 324000
2)To Mumbai @ 12% 720000 43200 43200
3)To Bangalore @ 12% 3150000 378000
4)Gift, taxable since ITC is claimed. 6300 378 378
702000 43578 43578.
Utilization of ITC.
IGST CGST SGST
Output tax liability 702000 43578 43578
1)ITC on IGST 100000
Less used for IGST 100000 100000
0 602000
2)ITC on CGST 70100
Less used for CGST 43578 43578
27522 0
Less used for IGST 27522 27522
0 574478
3)ITC on SGST 85100
Less used for SGST 43578 43578
41522 0
Less used for IGST 41522 41522
GST payable 532956 0 0