EXAMPLE-2
INTER- STATE TRADE OF GOODS
PARTICULARS | INVOICE VALUE UNDER EARLIER TAX SYSTEM AMOUNT (Rs) | INVOICE VALUE UNDER GST AMOUNT (Rs) |
Sale by (X) Input manufacturer(Haryana) to (Y)another manufacturer(Haryana) | ||
Cost of production | 1000 | 1000 |
Add profit margin(@10%) | 100 | 100 |
Manufacturing price | 1100 | 1100 |
Add excise duty @12.5% | 138 | 0 |
Total | 1238 | 1100 |
Add VAT @ 10%(Rounded to nearest rupees) | 124 | 0 |
Add Central tax @ assumed 10% | 0 | 110 |
ADD State tax @ assumed 10% | 0 | 110 |
INVOICE VALUE | 1362 | 1320 |
Sale by (Y) manufacturer(Haryana) to wholesale dealer (z) of Delhi -Inter-state | ||
Cost | 1100 | 1100 |
Add value addition & profit margin(@15%) | 165 | 165 |
Manufacturing price | 1265 | 1265 |
Add excise duty @12.5% | 158 | 0 |
Total | 1423 | 1265 |
Add CST @ 2%( Sale aginst C FORM) | 28 | 0 |
Add IGST @20% ( CGST+SGST) | 0 | 253 |
INVOICE VALUE | 1451 | 1518 |
ENTRY TAX levy when goods enter in Delhi(Rs 20) | 20 | |
EXCISE DUTY LIABILITY( Rounded of nearest rupees section 37D) | 158 | |
AVAILMENT OF CENVAT | 138 | |
PAYMENT through PLA | 20 | |
CST LIABILITY | 28 | |
ITC AVAILABLE | 124 | |
REFUND CLAIMED | -96 | |
Integrated tax liability | 253 | |
ITC of CGST in E-credit ledger | 110 | |
ITC OF SGST in E-credit ledger | 110 | |
PAYMENT(IGST) through E-cash ledger | 33 |
PARTICULARS | INVOICE VALUE UNDER CURRENT TAX SYSTEM AMOUNT (Rs) | INVOICE VALUE UNDER GST AMOUNT (Rs) |
Sale by (Z) wholesale dealer(Delhi) to Consumer with in state | ||
Purchase Cost(COST +EXCISE DUTY+CST+ENTRY TAX) | 1471 | 1265 |
Add profit margin(@10%) | 147 | 127 |
TOTAL (Cost of sales) | 1618 | 1392 |
Add VAT @ 10%(Rounded to nearest rupees) | 162 | 0 |
Add Central tax @10% | 0 | 139 |
ADD State tax @10% | 0 | 139 |
INVOICE VALUE | 1780 | 1670 |
VAT LIABILITY | 162 | |
ITC AVAILABLE | 0 | |
PAYMENT through PLA | 162 | |
Cental tax liability | 139 | |
ITC of IGST AVAILABLE | 139 | |
PAYMENT(CGST)through E-cash ledger | 0 | |
State tax liability | 139 | |
ITC of IGST through E-cash ledger | 114 | |
PAYMENT(SGST)through E-cash ledger | 25 |
NOTES:-
1. CST and Entry tax become part of cost when purchased from another State.
2. Credit not available on one to one link between inward and outward supply,
but we are taking example of chain of one transaction to make comparison of
previous Law and GST law more understandable. So we assumed that credit of
inward supply is only available in E-credit ledger. However, credit of CGST and
SGST first utilized respectively if balance remains it can be utilized for IGST
(Section 49)).
Credit of IGST is first utilized for IGST, balance, if any, can be utilized for
CGST and SGST. In this example IGST paid of RS 253 first utilized for CGST for
amount of Rs. 139 and balance Rs. 114 used for SGST payment according to section
49.