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TMI BlogHow does Input credit work hereX X X X Extracts X X X X X X X X Extracts X X X X ..... How does Input credit work here X X X X Extracts X X X X X X X X Extracts X X X X ..... ST of 2.5%, CSGT of 2,5% applies on the manufacturer side. Then, when we sell the product in India SGST and CSGT of 2,5 % each applies. Selling the product at 60,000 Rs. How much tax are we liable to pay and how much tax credit do we get? 2. Small company in Poland, produces the product in poland and ships it to India for sale. Basic Customs duty is 0% and IGST is 18%. The manufacturing costs ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 50,000 rs. When selling in India, the CGST and SGST that is applicable for the product is 2,5 % each. Selling price 60,000 rs. Therefore the company pays more tax on the IGST and collects less from the buyer... how does this work? do we get return from somewhere or can we get credit on excess amount? Thanks in advance Reply By Kishan Barai: The Reply: Assuming your procurement is 50,000 and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5% GST (52,500 = 50,000 BUY + 2500 GST) selling product at 60,000 INR {{60,000 = 57142.85 SELL + 2857.14 GST) Now on Imports from poland, 50,000 INR + IGST 18% = 59,000 INR (9000 IGST) So if you buy from poland and sell in india you will pay 9000 IGST & Collect 2857.14 as CGST & SGST so ITC available would be 2857.14 INR & yet 6142.86 INR excess IGST paid could be available as ITC on sale of d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ifferent product with CGST / SGST / IGST. X X X X Extracts X X X X X X X X Extracts X X X X
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