Analysis of Tax Liability and Credit Utilization in GST Regime

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Introduction
The GST Constitutional amendment Bill has been passed by Rajya Sabha on 3rd
August-2016 and by passage of this bill from Rajya Sabha, it is clear that Indirect
Tax Structure in India is going to be replaced by GST very soon.

The Most common question in the mind of every person, whether Professional or
Businessmen, is that how the Tax liability will be calculated after implementation
of GST.
Our Team has tried to prepare some real life example to understand the
calculation of Tax Liability under GST regime.

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Rules for Calculation Tax Liability and Tax Credit

1- In case of Intra state Sale, CGST and SGST will be charged and no IGST will

be charged.

2- In case of Inter State sales, only IGST will be charged and CGST / SGST will

not be charged.

3- Output CGST will be adjusted only with Input CGST.

4- Output SGST will be adjusted only with Input SGST.

5- Cross adjustment of CGST with SGST and SGST with CGST is not allowed.

6- Output IGST will be adjusted with Input IGST after that with CGST and after

that with SGST in this sequence only.

Regards
SOURAV BAGARIA