Yes friends, good morning, good evening, good afternoon.
How are you all?
Have a great time outside.
Sir, we should always remember that this is life.
God has given us a small life.
This life is a unique gift from God, sir.
Why should we spend it being sad?
Problems are in every person's life, sir.
But a true human being, a powerful human being is the one
who can overcome these problems.
You don't have to overcome your problems.
You have to overcome your problems, sir.
It is said that everyone comes crying, but the one who
leaves with a smile will be known as Sikandar of destiny.
So, in life,
I just want to tell you one thing.
There is one word in life.
This.
It's not working now.
The word is relatives.
Relatives.
Sir, these relatives,
why they were born, what is the reason behind it, what is
their intention of being born, we have never been able to
find out.
Neither do they come in handy in times of trouble, nor do
they have any contribution in someone's life.
Yes, their contribution is that when you are going through
a bad time, they come to taunt you.
Your child is not able to perform well in studies, or his
mind is not in studies, it is in sports.
They directly say, what will you do in life?
We will do anything, we are not asking anything from you.
We will do anything.
Are they coming to you to spread their hands?
In our life, leave us alone, silent, and alone.
Why do you come to us again and again?
Sir, relatives taunt a lot, they taunt everyone, they taunt
me too, they must be taunting you too.
Don't take their words to heart.
Listen from one ear, take it out from the other ear.
Relationships can't be ended.
This is also a problem.
They are saying, either create a little talent, to make fun
of them.
Do a little.
And if you are not able to do it, learn to ignore.
Learn to answer them with your work.
Learn to answer them with your results.
Answer them with your success.
You have no one other than your parents, you have no one
other than your siblings.
You have to accept this in life.
There are only 3-4 people in your life.
And if you have kept a dog, then that's it.
You have 4-5 people.
These 4-5 people are the ones who value your success.
They are the ones who want this person to become something
in life.
They are the ones who are happy with your success.
No one else cares.
Work for them.
Don't leave them.
Don't take their words to heart.
Let's start a new topic.
It's a very good topic.
It's an ITC topic.
And this will be our last topic in our GST lectures.
After that, where are you and where am I?
We don't know anything.
So, before we leave, this is the last topic.
Let's make this last topic memorable.
There will be 2-3-4
ITC lectures.
Do your best in these 2-3-4 lectures.
Put a little more effort in it.
Put a little more effort in this lecture than in the other
lectures.
Give me such a performance today.
Give me such an attention that has never been given before.
I have read with intensity.
I have read with full energy.
If I want something in return, listen to me carefully.
There are 3-4 lectures left.
And let me tell you, this is the biggest topic of ITC.
It's the most important.
If you understand this topic,
GST is nothing for you.
GST is over.
But if you don't understand this, then there will be a
problem in GST.
There will be a lot of problems.
You have to accept this.
This is the topic of
Input Tax Credit.
Let's discuss this topic in detail.
And let's start the topic of ITC,
Input Tax Credit.
What is Input Tax Credit?
Remember the first lecture of GST, when I explained the
meaning of
Input Tax Credit.
This is the biggest feature of Indirect Taxation.
The biggest benefit of Indirect Taxation is that whatever
tax you pay when you are a trader, for example, you pay a
tax at the time of purchase.
You buy an item worth Rs.
1000 and pay a tax of Rs.
100 on it.
Now when you sell it, suppose you sell it for Rs.
1500-1600, at that time also you will collect some tax from
the customer.
At that time also you will collect some tax from the
customer.
Sir, when you collect tax from the customer, will you
collect all the tax as it is, or will you minus the tax at
the time of purchase?
You will also minus the tax.
So what do you call this minus?
Sir, you are taking the credit of your Input Tax.
Try to understand it.
I will explain it very easily in a very simple language.
No problem, no tension, nothing.
Come here.
Suppose a manufacturer makes an item worth Rs.
1000 and its costing is Rs.
He collects a tax of Rs.
100 and sells it to you for Rs.
You bought an item from this person.
You bought an item.
You see that my costing is Rs. 1000.
Don't add this Rs.
100 in your costing.
Why don't you add it in your costing?
Because there is no costing.
I will get a refund for this or I will take credit for this.
So where is the costing?
Sir, what is costing?
Costing is the thing which cannot be paid.
The customer will directly pay for it.
I am not giving this from my pocket.
If I am giving a tax of Rs.
100 to this person, then I am buying this item.
If this person has sold me an item worth Rs.
1100, then it is agreed.
I have paid him a payment of Rs.
1100 when I bought the item.
But out of that, I have paid
Rs. 1000 for the item and Rs. 100 for the tax.
And the Rs.
100 that I have paid for the tax,
I am going to take credit for it later.
When I sell the item,
I will adjust this Rs. 100 from there.
I will show you how to do it.
Assume that he has added his profit of Rs.
The cost is Rs. 1500.
Now, on top of Rs.
1500, he has added a tax of 10%.
10% means Rs. 150.
This is his tax.
This is the tax that he is collecting from the customer.
And finally, the price of this item is Rs.
The final price of Rs.
1650 has been calculated.
When he sells this item to the customer, he will sell this
item to the customer for Rs.
What will he say to the customer?
He will say that Rs.
1500 is the price of the item and Rs.
150 is the price of GST.
He will collect Rs.
150 tax from the customer.
On top of this, the liability of collecting the tax is Rs.
According to the law, the government has to collect Rs.
150 from the customer.
The government has to collect Rs.
How much money has the government collected on this item?
Has the government collected Rs.
When I collected Rs.
100 from the customer,
I gave him Rs. 100 tax.
What would he have done?
Would he have taken the tax home?
Would he have kept it in his locker?
Would he have collected Rs.
100 and deposited it in the government's account?
So, on this item, the government has received
Rs. 100 tax.
How much more has to be deposited? Rs.
There should have been a collection of Rs. 150.
Suppose there is a court.
The government says that you have purchased the item and
you have sold it to the customer.
So, on this stage, according to the value of the item, the
tax is Rs.
So, the tax of Rs.
150 should have come to us by now.
I said, okay, that's right.
According to the value of this item, the tax of Rs.
150 should have come to us by now.
Madam, you are absolutely right.
You are absolutely right.
But I will also tell them that, okay, the tax of Rs.
150 should have come to us by now.
But I have already deposited the tax of Rs.
I have already deposited the tax of Rs.
100 at the time of the purchase.
So, at least reduce that as well.
Reduce the tax of Rs. 100.
Now, how much more tax do I have to deposit?
How much more tax do I have to deposit?
Rs. 50.
So, I have to deposit this from my pocket.
This person will deposit Rs. 50 from his pocket.
But, you will get some money from your pocket and deposit
it.
100 Rupees is nothing but Input Tax Credit.
What is 100 Rupees?
Basically, this is Input Tax Credit.
The goods that you have purchased, the purchases that you
are doing,
you are paying tax on the time of purchase.
That tax that you are paying, either you will sell the
goods that you have bought.
You will also collect tax on the time of sales.
So, you have collected tax and you are paying it.
Minus the tax that you have collected.
Minus the tax that you have paid on the time of purchase.
Why am I doing this again and again?
Why am I doing this?
Brother, I am doing this because
Think about it. If this was not a concept of Minus.
First, see this.
Once you understand this, then I will take you to the next
point.
If this was not a concept, then what would have happened?
Look at this once.
Take a screenshot of this once.
Have you taken a screenshot?
Come to the next point.
Now, let's assume that if this was not a concept of Input
Tax Credit, then what would have happened?
What would have happened is that the goods are worth Rs.
1000 and the tax is worth Rs.
Okay? So, in Rs.
I have paid Rs.
1100 and I have bought this coat worth Rs.
Now, I have to supply it further.
And I know that the tax that I have paid,
I am not getting its credit.
Neither am I getting the credit, nor am I getting the
refund.
Sir, if I am not getting any benefit from it, then what is
that thing?
The tax that I will pay worth Rs.
100, what will happen to me?
I will have a cost.
My cost will increase.
Now, the goods worth Rs.
1000 that I was buying, its cost is not Rs.
1000 anymore.
Its cost has increased to Rs. 1100.
So, I will show my cost here of Rs. 1100.
I will not leave the profit margin.
I will take that too.
Rs. 500.
It has become Rs. 1600.
On top of this, there is a 10% tax.
10%.
So, how much is that?
Rs. 160.
What is my total?
Rs. 1700.
Rs. 160.
What is this scenario?
This is the scenario where you are not getting ITC.
Here, you have given a tax worth Rs. 100.
You are not getting any benefit from it.
You are not getting any credit.
Here, you are collecting a tax worth Rs. 160 from the
customer.
The customer is also not getting any benefit from it.
Understand the second aspect of this.
According to the law,
according to the law, in that case, how much tax would have
come to the government?
It would have become Rs. 150.
Rs. 150 tax should have come to the government.
Out of which, you had reduced it to Rs. 100.
The previous one.
What is happening in this case?
In this case, according to the law, Rs. 150 tax should have
become.
Now, how much is it becoming?
I have paid Rs. 100 to the government here.
Okay?
And this Rs. 160 payment has also come here.
How much payment is going to the government?
Rs. 260.
On the same thing,
tax is being imposed twice.
And the tax that is being imposed, it is not getting any
benefit from it.
It is not getting any benefit from it.
Nor will it get any benefit from it if someone buys it
further.
Understand the third point.
And the worst point, that point is tax on tax.
Tax on tax.
Which is being imposed in this scenario.
Sir, how is it being imposed?
Brother, see.
You are charging 10%.
Whose? Rs.
This is your tax.
What is coming in this Rs.
Is this Rs.
1000 coming in this Rs.
The tax that you had paid for Rs. 100 is also coming.
And your profit of Rs. 500 is coming.
Is it coming or not?
Is it not coming?
Look at it.
You are charging 10%.
No problem.
Do it.
You are charging 10% of your profit.
No problem.
Sir, why are you charging 10% of your tax?
You are collecting 10% of your tax.
You are collecting it on Rs. 1600.
So, I have told you the break-up of Rs. 1600.
What is the break-up?
This is my cost of Rs. 1000.
I have deposited the tax of Rs. 100.
And my profit of Rs. 500.
10% tax in this case.
When you don't get any ITC.
What are you doing in that case?
You are charging 10% of Rs. 1600.
What is the meaning of 10% of Rs.
That you are charging 10% of this portion of tax also.
Right?
You are charging 10% of tax also.
Which tax is charged on top of tax?
Sir, tell me this.
What was this Rs.
Rs. 100 was also tax.
You had paid the tax.
Now, you are charging 10% of that tax.
Why?
What happened?
Tax on tax.
Kill the customer before reaching the end.
The price of this thing will keep increasing so much that
no one will be able to afford this thing.
There were so many loopholes in this before.
There were so many loopholes.
The system used to run like this.
Earlier, the structure of tax, the structure of indirect
tax,
I am telling you the actual thing.
What used to happen was some taxes were kept by the central
government
and some taxes were kept by the state government.
You are making something, manufacturing something,
purchasing something or you are getting some services to
produce your goods further.
So, some things used to be like this.
On top of that, you used to pay tax.
Half of the tax used to go to the central government.
Like service tax etc.
Excise tax used to go to the central government.
And the sales tax that you are getting after purchasing
used to go to the state government.
The payment that you are making here of Rs.100, some things
were of the central government and some were of the state
government.
Now, when you will process it and sell it in your state,
then everything is fine in the state.
If you are selling in the state, then the state government
that you have paid tax to, you used to get its credit.
But the central government that you have paid tax to,
what about its credit?
Should I have got that credit legally?
The answer is yes.
But did I get it?
No, I didn't.
What was the problem with that?
Sir, this was the problem that was discussed here.
Tax on tax will keep increasing.
The price of things will keep increasing for no reason.
This was the problem.
Sir, keeping all these problems in mind,
the government took a decision that when we will bring GST,
then we will integrate the entire structure of taxation.
We will not differentiate between goods and services.
In the earlier case, there was differentiation.
If you used to procure services, the central government
used to pay tax on services.
The state government used to pay tax on goods.
There was no credit for each other.
When I used to do sales,
I used to get it here.
In GST, the structure of ITC is like this.
Whether you are procuring goods or services,
whatever you sell in future,
even if you are not providing services, you are only
selling goods,
still you will get the credit of the service person.
You are selling goods, you will get the credit of goods.
You will get the credit of services.
I am only providing services.
Like a CA, a doctor, a lawyer,
they are providing services.
An architect is only providing services.
But to provide that service, a lot of things are consumed.
Like for example, telephone.
He is a lawyer, won't he talk on the telephone?
Won't he buy a witness by talking on the telephone?
Yes, he will.
Don't go to the court today.
A CA won't use the phone.
He won't use a laptop.
There are goods.
He must have paid some tax on the goods.
He must have received a telephone bill.
GST must have been charged in that telephone bill.
If he is buying a laptop,
the laptop has goods.
GST must have been charged on the goods.
What is he providing in future?
Services.
If there was a previous structure,
he would have collected the service tax at the time of
service.
And the goods that I have bought,
there would have been a sale tax on them.
It was impossible to get each other's credit.
But what is happening now?
I am providing services.
I am collecting GST.
I am buying goods.
To provide services.
I am buying a laptop etc.
To provide services.
So the GST that I have given on the laptop that I am buying,
I will get the credit from here.
This is the point of ETC.
In the new GST scheme,
everything has been integrated.
There is no difference in goods and services.
You can supply anything.
You can procure anything to supply anything.
To procure anything,
whatever GST you have paid,
you will get its credit.
There are some conditions.
Conditions are there in everything.
There are some conditions.
If you satisfy those conditions,
you will get its credit.
Sir, this was the basic point.
So, next lecture, we will start its reading and what are
the conditions, we will see that also.
Basically, did you understand what is IDC?
Why? Basically, what we have done for its integration?
What are its uses?
What was the loss earlier?
The price of things was increasing for no reason.
But now this new system will reduce the price of things.
Tax on tax.
Just think, how cruel you were.
Earlier, you were paying tax at the last stage.
Now, you are collecting tax again.
So, the solution to all these things has been found.
And we will get to read this in the chapter of IDC itself.
What treatment you have to do for tax, which you have paid
tax for.
Sir, you have paid tax.
You should get benefits.
Sir, we will talk about those benefits.
What benefits you will get?
What are the conditions to take IDC?
We will discuss all these things very easily.
See you in the next lecture.
Bye.