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Input credit is available for a GST paid hence it will not be added to purchase cost In definition it is said that IGST is excluded from the cost of purchase if credit for the same is available unless mentioned specifically is not form part of cost of purchase I can't understand sir, please explain
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If you pay GST on sale of your product, then in that case you get credit for the GST paid on your inputs. It is called input tax credit. So the GST paid on inputs in such cases cannot be considered as cost as it is adjusted against the GST liability on output. So while determining the cost of the material if there is GST in invoice for material purchased then GST should not be considered but if the question says there is no input tax credit specifically then consider the GST as part of the cost
Sudha Reddy
If you pay GST on sale of your product, then in that case you get credit for the GST paid on your inputs. It is called input tax credit. So the GST paid on inputs in such cases cannot be considered as cost as it is adjusted against the GST liability on output. So while determining the cost of the material if there is GST in invoice for material purchased then GST should not be considered but if the question says there is no input tax credit specifically then consider the GST as part of the cost
Still confusing sir,can u explain this personally , please sir
Thread Starter
Sri BhawinStill confusing sir,can u explain this personally , please sir
You have also enrolled in GST course - please go through chapter 1 & 2 of that course and you will understand this clearly
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