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

[KASTURI SETHI]

Specialized Services of CA /CMA are required for this purpose..

[Shilpi Jain]

Pls ask questions which clarifies the principles of law to enable you do the computation. Lot of patience and concentration required to resolve these kind of queries.

[bommu venugopal reddy]

sir..

Total value of purchase - Rs. 10,14,00,000, ITC accumulated - Rs. 1,08,00,000 (IGST) + Rs. 36,80,000 of CGST and SGST each including RCM..

Gross sale value is Rs. 11,00,00,000/- gross liability - Rs. 1,98,00,000/- after adjusting accumulated ITC net cash deposit required is Rs. 16,40,000/- under SGST heading.

Further to note that since the supplier outstanding is not cleared within 180 days of invoice on supply value of Rs.3,00,000, ITC reversal is required as per provisions which is Rs.54,000/- to be reversed along with interest of 18% (to be calculated for 6 months) which filing July returns.

AI Summary

Input tax credit reversal required where supplier invoice remains unpaid beyond specified period, affecting net GST liability. Accumulated ITC comprises IGST credit of Rs. 1,08,00,000 and CGST and SGST credits of Rs. 36,80,000 each, total purchases Rs. 10,14,00,000. Gross tax on outward intra-state supplies is Rs. 1,98,00,000; after adjusting available ITC the net cash deposit required is Rs. 16,40,000 under SGST. An ITC reversal of Rs. 54,000 is required for a supplier invoice of Rs. 3,00,000 unpaid beyond 180 days, plus interest at 18% for six months, to be filed in the July return.