TMI BlogHow does Input credit work hereX X X X Extracts X X X X X X X X Extracts X X X X ..... 1. Small company in Poland, wants to outsource product manufacture in India to (OEM). The product will be sold in India. However, the invoice will we paid by the polish company. Assuming the Invoice value is 50,000 Rs and SGST 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 m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uch 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 are 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,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 different product with CGST / SGST / IGST. - How does Input credit work here - Query Started By: - Prashanth Swamy Dated:- 29-8-2017 Customs - Import - Export - Cu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stoms - SEZ - Got 1 Reply - Customs - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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