You add up the GST/HST paid or payable for each purchase and expense of property and services you acquired, imported, or transported into a participating province to compute your ITCs. You multiply the sum by the amount of ITC you are eligible to claim. You figure out how much to adapt for changes in usage, sales, and improvements.
For CGST output, go through ITC of IGST first, then CGST.
For SGST output, go through the ITC of IGST first, then SGST.
For IGST Output, go through the IGST ITC first, then the CGST, and finally the SGST.
The ITC is a device that prevents taxes from cascading. In layman's terms, 'tax on tax' describes the cascading of taxes. Credit for taxes levied by the central government is not available as a set-off for taxes levied by state governments, and vice versa, under the current taxation structure.
The IGST credit must be used first to offset IGST tax due, according to GST tax offsetting guidelines. Any remaining IGST credit can be applied to CGST liability, then to SGST liability (in that order). MK Kitchen Knives first applies its IGST credit to their Rs. 20,000 IGST liability.
The tax already paid by a person at the time of purchase of goods or services and which can be deducted from the tax payable is referred to as input tax credit. For example, a merchant purchases a good for Rs 100 and pays a 10% tax on it. Now, this seller sells such things for Rs. 150 and collects a Rs. 150 tax.
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Harmandarsing darshansing dudhani
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How I get the serial number and activation key?
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SHAIK ayaz
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Excellent sir
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Sayyed Alima Akbar
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Very good course
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Riya
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sir where can I check my assigment answer
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Ankit Bhardwaj
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Very good course with detailed explanation
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Zahra Musthafa
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i need english classes plz
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NIKET TANDON
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Yes
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Dinesh ostwal
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to good
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Raj Luhar
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the video and teaching is too good and last i am also gujarati : )
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