How to Compute GST Liability

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Supply of Goods or Service within State ( Intra State) , the supplier charge Dual GST that is CGST and SGST at the rate applicable on such supply.



A) Suppose Ram supply Goods or Service to Shyam 

Value Charged for Supply of Goods or Service                     20,00,0000

Add: CGST 9%                                                                             1,80,000

Add: SGST 9%                                                                             1,80,000

Total Price Charged by Ram to Shyam                                   23,60,000


The CGST and SGST charged on Shyam for Supply of Goods or Services will be remitted by Ram to the appropriate account of the Central and State Govt. respectively.

Ram is the First Stage Supplier of Goods or Services and hence, does not have credit of CGST and SGST or IGST.

B) Supply Of Goods or Services by Shyam To Mohan- Value Addtion is @ 20%

Shyam will avail credit of CGST and SGST paid by him on the purchase of Goods or Services and will utilise such credit  for being set off against the CGSt and SGST payable on the Supply of Goods or Services made by him to Mohan.

Value Charged For Supply of Goods or Services ( Rs. 20,00,000 * 120%)                           24,00,000

Add: CGST 9%                                                                                                                        2,16,000

Add: SGST 9%                                                                                                                         2,16,000  

Total Price Charged by Shyam from Mohan for Local Supply of goods or services           28,32,000


Now Calculation Of GST Payable by Shyam To Govt.

CGST Payable                                                          2,16,000 

Less- Credit Of CGST                                             1,80,000  

CGST Payable To Central Govt.                             36,000

SGST Payable                                                           2,16,000 

Less- Credit of SGST                                                1,80,000

SGST Payable To Central Govt.                               36,000

Note: Rate of CGST and SGST have been Assumed to be 9% each.

Supply of Goods or Service Outside State (Interstate )

In case Of Supply of Goods or Services, the supplier would charge IGST at Specified rates on the supply.

A) Supply of Goods or Services by Amar to Akabar ( Both are in the same State)

Value charged for supply of goods/services                      20,00,000

Add- CGST @ 9%                                                              1,80,000

Add- SGST @ 9 %                                                              1,80,000

Total Price Charged by Amar From Akabar 
for Intra State(within State) supply of Goods
or Services                                                                           23,60,000

Amar is the first stage supplier of goods or services and hence, does not have any credit of CGST, SGST, IGST.

B)  Supply of Goods or Services by Akabar of satet of X to Antony State of Y- Value Addition @ 20%

Value Charged for supply of Goods or Services ( 20,00,000 *120%)  - 24,00,000

Add- IGST @ 18%                                                                                    4,32,000 

Total Price Charged by Akabar form Antony 
for inter state supply of goods or services                                                 28,32,000


Computation of IGST payable to Govt. by Akabar

IGST Payable                                                                                     4,32,000

Less- Credit Of CGST                                                                       1,80,000

Less- Credit Of SGST                                                                         1,80,000

IGST Payable                                                                                      72,000









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