Calculation of tax liability and ITC admissible

[ARUNKUMAR AGRAWAL]

‘A’ is a registered person who is doing trading business of Iron and Steel. In the month July2022 his transactions are as below:-

1. He received intra-state inward supply of Iron and Steel of value Rs. 4,00,00,000 and paid (CGST+SGST) Rs. 72,00,000 at the rate of 9%+9%

2. He received inward supply of Iron and Steel of value Rs. 6,00,00,000 from out of State and paid IGST Rs 1,08,00,000 at the rate 18%

3. He paid Rs 2,00,000 to goods transport service provider who has opted to pay tax on FCM basis and paid Rs 4,00,000 to other goods transport service provider who has not opted to pay tax on FCM basis.

4. He also received supply of a mini truck (Chhota Hathi) of value Rs 5,00,000 and paid (CGST+SGST) Rs 1,40,000

5. He had received a supply of Iron and Steel in the month of January-2022 from registered person ‘B’ of value Rs 3,00,000 and tax involved (CGST+SGST) was Rs 84,000 for which tax invoice no B1097 dated 01-01-2022 was issued by ‘B’ and return of January 22 were filed by both persons ‘A’ and ‘B’ properly but ‘A’ has not made the payment of that transaction till July 22.

6. His outward supply in this month is 11,00,00,000 in the state and there is no any supply out of state.

7. Please sir Calculate tax liability and ITC admissible to ‘A’ supposing that total supply of input was received before 18-07-2022

AI Summary

Trader Seeks Tax Advice: ITC Reversal Required Due to Non-Payment in 180 Days; CA/CMA Consultation Suggested A registered trader in Iron and Steel sought advice on calculating tax liability and Input Tax Credit (ITC) for July 2022. The trader's transactions included intra-state and inter-state supplies, payments to transport service providers, and a mini truck purchase. The gross sale value was Rs. 11,00,00,000 with a gross tax liability of Rs. 1,98,00,000. After adjusting for accumulated ITC, a net cash deposit of Rs. 16,40,000 was required under SGST. An ITC reversal of Rs. 54,000, plus interest, was necessary due to non-payment within 180 days for a previous transaction. Replies suggested consulting a CA/CMA for detailed computation.