Welcome to a unique lecture.
Sir, why is it unique?
It is unique because the time has come when I will tell you
the concept of GST.
How does GST move?
Why did GST come?
How? What is Input Tax Credit?
What is Output Tax Credit?
Who is the seller?
Who is the buyer?
Finally, who gets the tax button?
How does the tax reach the government?
Today, I am going to show you the whole picture.
Let's start.
For this, I will keep two people with me.
Mr. A and Mr. B.
Two persons will be kept here.
This is Mr. A.
And all of you will write along with me.
Okay? All the people who are watching me, all of you write
along with me.
In our picture, we will make A the seller and B the buyer.
Okay? A sold goods to B.
For how much?
For Rs. 1 lakh.
He sold goods for Rs. 1 lakh, my dear friends.
Okay? Okay.
So, tell me one thing.
How much will A make the bill?
How much will A make the invoice to B?
How much will he ask for the invoice?
Based on the information so far, tell me.
Sir, is this something to ask?
If the goods are worth Rs.
1 lakh, then how much will the bill be?
It will be worth Rs. 1 lakh.
Sir, there is nothing to say, hear or ask about this.
But do you know what A was saying?
A was saying to B that the bill that I will make is worth
Rs.
1 lakh.
In that, I need a GST of plus 18%.
I need a total of Rs. 18,000.
Rs. 1,18,000.
The full form of GST is
Goods and Services Tax.
The GST stands for Goods and Services Tax.
GST was launched on 1st July, 2017.
What used to happen in India earlier?
The country was one.
But the states were different.
And every state had its own sales tax rate.
Same state had a different tax rate.
Interstate had a different tax rate.
What used to happen with this?
The country was one.
But there were many economies in the country.
In the same country, some states were developing well.
And some states were lagging behind.
The tax rates were not different.
That is why a vision was seen whose name was One Nation,
One Tax.
Under this, the Goods and Services Tax was implemented on
1st July, 2017.
As soon as GST came, my dear friends, what started
happening?
In the whole country, in every state, there will be only
one tax.
No matter where the goods are sold, the tax rate of that
product will be the same all over India.
If there is a mobile phone, if it costs Rs.18,000 in one
state, it will not cost Rs.18,000 in another state.
All over India, the rate will be the same.
That is why here it is Rs.1,18,000.
Now, how much will poor B pay?
How much will B pay to A?
B has a bill of Rs.1,18,000.
Now, how much will B pay to A?
He will pay Rs.1,18,000.
He has paid Rs.1,00,000 in the bill and Rs.18,000 for GST.
If he refuses to pay GST, do you know what A will say?
Hey, this is what the government has told me.
B says, I am not paying GST.
Let me take the goods.
A says, hey B, the government has told me that whoever is
your buyer, collect GST from him and send it to me.
This is a government order.
B cannot refuse.
If B refuses, A will say, buy from someone else.
And if B goes to someone else to buy, then that seller will
also ask for GST from B.
Because the government has given this order to all sellers
that whenever you sell, your GST should be charged in the
bill.
Collect GST from the customer and send it to us.
Okay? Now, the government will ask for GST from A.
So, out of Rs.1,18,000 that A has received, how much should
A keep in his pocket?
Should he keep it all or Rs.1,00,000 or Rs.18,000?
What does the public say?
How much will A keep in his pocket?
Rs.1,00,000.
And the remaining Rs.18,000, who will A give it to?
To the government.
The remaining Rs.18,000,
A will give to the government.
Rs.18,000.
Okay? In this way, A works as a middleman.
The seller works as a middleman.
Whose pocket did GST come from?
Rs.18,000.
From Mr. B's pocket.
Who did it reach?
To the government.
What did the seller do?
In between, he worked as a middleman.
He worked as a beggar.
So, if I talk about the net position here, how much is the
net position?
From the point of view of GST,
I can only tell you this.
What is the net position of B?
Minus Rs.18,000.
Because Rs.18,000 came out of his pocket.
What is the position of the government?
Regarding GST, plus Rs.18,000.
Because Rs.18,000 came to the government.
And what is the position of Mr.
First, Rs.18,000 came to him.
Which he collected from B.
And then he gave that Rs.18,000 to the government.
So, the net position of A is 0.
That is what I want to tell you.
The middleman, who is a beggar, takes it from one hand and
gives it to the government from the other hand.
Okay? Okay, sir.
This process remains with us.
This is the way.
The government says,
I want to collect GST from the person who is a buyer from
the consumer of the goods.
Not from the seller of the goods.
Not from the seller of the goods, but from the buyer of the
goods.
Okay? And in between, the middleman is being made the
seller.
The middleman is the seller.
Okay, sir.
What will happen after this?
Now, see, the topic of the next discussion will come.
Can you tell me, how many types of governments are there in
our country?
How many types of governments are there in our country?
Sir, I will tell you, there are two types, if you don't
know.
Which is the first one?
CG, means Central Government.
The second, which is owned by every state, is State
Government.
So, brother, just tell me one thing.
Now, this Rs.
18,000 that is reaching the government, should it only be
the right of the Central Government, or should it only be
the right of the State Government, or should it be the
right of both the governments?
Tell me, what should it be?
Does only the Central Government need money to run the
country?
Won't the state run?
Does the State Government also need money?
That is why, this Rs.
18,000, is divided by both the governments.
Half and half.
The Central Government,
Modi Ji will keep Rs.
9,000, and the State Government will also get Rs.
Okay? So, brother, do you know what will happen?
Assume, this seller is also in Haryana, and this buyer is
also in Haryana.
The seller and buyer both are in Haryana.
So, as soon as B gives Rs.
18,000 to Mr.
A, what will Mr.
A do?
He will put Rs.
9,000 in Modi Ji's pocket, and will deliver it to the
Central Government.
And the remaining Rs.
9,000, in the State Government, will be delivered to
Manoharlal Khattar Ji.
Okay? This is how this discussion will continue.
Okay, sir.
Now, I will take these things one step further.
One step further.
That is why, now I will write with a different coloured pen.
I will write with a pink coloured pen.
Let me do one thing.
I will write with this red pen.
Listen to the further discussion.
What is happening now?
B has also sold these goods to someone.
Here.
This is Mr. C.
He bought B because B is a retailer and a trader.
He also sold it further.
Now, what will happen?
For example, C is also in Haryana.
Now, what will happen?
B will sell it.
So, just tell me one thing.
Will B sell it for Rs.
1,00,000 or will B make it a little expensive?
Tell me.
What do you say?
Will it be a little expensive?
B's sale price is not Rs. 1,00,000.
B has made its sale price Rs. 1,50,000.
It has added Rs. 50,000 as its profit margin.
M.E. has not bought it and brought it.
If he gives Rs.
1,00,000 to C, is he a fool?
He has added his margin.
And what is the price?
Rs. 1,50,000.
Will he also have to collect GST?
Say yes or no.
Yes.
Because what has the government said?
Every seller has a responsibility to collect GST.
It is the responsibility of every seller to collect GST.
The rate will remain the same.
Whether one item is sold once or twice, whether it is sold
in one state or in another state, the rate will remain the
same.
If it is 18%, then it will remain 18%.
There is nothing to worry about.
There is no difference.
So, tell me.
If Rs.
1,50,000 is sold at 18%, how much will it be?
Please calculate.
If it is 18% at Rs. 1,50,000.
Rs. 27,000.
Yes.
Let me check.
I think Rs. 27,000 is the right answer.
Rs. 27,000.
This is Rs. 27,000.
No, no.
It is not Rs. 1,18,000.
It is Rs. 1,50,000.
You are adding GST on Rs. 18,000.
What are you doing?
Okay.
So, what will be the bill this time?
This time, the bill will be given by B to C.
Sir, Rs. 1,50,000 and Rs. 27,000.
Rs. 1,70,000 and Rs. 27,000.
How much will C pay to B?
Tell me
Sir, he will pay Rs.
Rs. 1,77,000
You are absolutely right
How much money will B keep in his pocket?
Can anyone tell me?
I will write with a black pen
Now everyone's answer is
B will keep Rs.
1,50,000 in his pocket
Rs. 1,50,000
Let me tell you for your information
If he keeps Rs.
1,50,000 in his pocket
And as you are saying
He will send half of Rs.
27,000 to the central government and state government
Rs. 13,500 and Rs.
Then there will be a small problem
Which the government did not want
Let me tell you what will happen if this happens
Till now you have been taught
That the seller will keep Rs.
1,50,000 in his pocket
And Rs.
27,000 in his pocket
He will give half to Modi ji and half to Khattar ji
Yes By doing this
Do you know what will happen?
Till now how much money has reached the central government?
If you want this
Sir, first he sent Rs.
And now he sent Rs.
So how much money has reached the central government?
Rs. 22,500
And how much money has reached the state government?
Rs. 9,000
And Rs.
Rs. 22,500
How much money has reached the government?
Rs. 45,000
Means Rs.
And Rs.
Total reached Rs.
Okay How was this Rs.
18,000 coming?
Sir, he had put 18% on Rs.
Then this Rs.
18,000 was coming
Okay And how was Rs.
27,000 coming?
When he put 18% on Rs.
Then Rs.
27,000 was coming
In this way, total Rs.
45,000 was coming
And this Rs.
Has reached Rs.
22,500 and Rs.
Clear Okay There is a problem here
On Rs.
Tax has been imposed twice
Once And then
When you are imposing on Rs.
The first Rs.
1,00,000 is also included
That's why
Tax has been imposed twice
Means 36% tax is being imposed on Rs.
Means Rs.
Twice And on the remaining Rs.
50,000 18% tax is being imposed
In this way, Rs.
45,000 can be imposed
This is wrong
On Rs.
Tax is being imposed twice
Government had to avoid double taxation
This is the speciality of GST
That Tax will not be imposed twice on one value
Tax will not be imposed twice on one value
Government will not take tax twice on one value
Otherwise Your goods will become so expensive
The more the goods will become expensive
The more the government's earnings will increase
And the government will want to increase the price
That's why the government said
No, we don't think like that
We will avoid double taxation
We will not impose tax twice on one value
Okay So, in total
How much money should reach the government
If you tell me
Sir, the initial Rs.
1,00,000 should reach 18%
Means Rs.
And next time
By not imposing on Rs.
The value added by B for its margin
Rs. 50,000
If you say 18%, then
Rs. 9,000 should reach the government
Total Rs.
27,000 should reach the government
If the government avoids double taxation
If you say 18%, then
Rs. 18,000 should not reach the government
If you say 18%, then
Rs. 18,000 should not reach the government
Rs. 45,000-18,000 should reach the government
Only and only
Rs. 27,000
Do you agree with me?
If you have any doubt, tell me
In any figure
So, the government said
Initially, Rs.
1,00,000 should be imposed on Rs.
And then
The margin added by B
Rs. 50,000
Only Rs.
18% should be imposed on it
Not on Rs.
So that Rs.
1,00,000 should not be taxed twice
So, Rs.
18,000 and Rs.
9,000 should reach the government
Rs. 27,000 should reach the government
Okay? And how much did A impose on the government
Please tell me
Rs. 9,000 and Rs.
Now, the government should get
Rs. 9,000 only
Which is Rs.
50,000 and Rs.
The government should get
Rs. 9,000 only
You are absolutely right
So, do you know what will happen?
From this Rs.
27,000 GST
B will keep
Rs. 18,000 in his pocket
And the remaining Rs.
9,000 will reach the government
Rs. 4,500 to the central government
And Rs.
4,500 to the state government
In this way, what happened?
This B which had taxed Rs.
18,000 to the government through A
The government said
If you sell C
Then collect the Rs.
18,000 tax from C and keep it in your pocket
Above that, if you are collecting Rs.
9,000 tax
Just deliver it to us
Here, please tell me
After this scenario
What is the net position of Mr.
Mr. A's net position is the same
Mr. A was out of the picture
First, he got Rs.
18,000 from B
He gave Rs.
18,000 to B to the government
What is the position of the government?
Of the central government and of the state government
Let me tell you
Rs. 9,000 was delivered to the central government
Plus Rs.
Who is delivering it now?
Rs. 13,500 to the central government
Rs. 9,000 to the state government
Plus Rs.
4,500 to B
Rs. 13,500 to the state government
Total to both the governments
Rs. 27,000
The government wanted only Rs.
What is the net position of B?
B paid Rs.
18,000 tax to A
Plus Rs.
27,000 tax from C
And how much did he deliver to the government?
Rs. 9,000
Here is Rs.
4,500 and Rs.
The net position of B is zero
According to GST
If a person buys something he has to pay GST from his own
pocket
But if he sells it to a person from C he has to pay GST
from his own pocket
He has to pay Rs.
18,000 from his own pocket
He has to pay Rs.
18,000 from his own pocket
He has to pay Rs.
18,000 from his own pocket
Ultimately, what did the government do?
A is also in a zero position
B is also in a zero position
Yes or No? Yes
How much did the government pay?
Rs. 27,000
From whose pocket?
Rs. 27,000 from C's pocket
That means
A and B both became middlemen
That means whoever buys and sells will become a middleman
for the government
He will have to pay GST
He just has to deliver the goods
That's it
If a person who buys gets a chance to sell later he can
collect his GST and keep it in his pocket
He has to deliver the extra GST to the government
Another rule to learn from here
GST is Consumer Based Tax
Do you understand the meaning of Consumer Based Tax?
GST's burden will fall on the person's pocket who will
finally consume the goods who will finally consume the goods
Who was in our example?
Mr. C
That's why finally the burden of Rs.
27,000 is falling on Mr.
C's pocket is falling on Mr.
C's pocket
Mr. C's pocket
Tell me
A and B are working as middlemen and the government is
getting
Rs. 27,000 from C's pocket
A and B are in zero position
Tell me
How did we get Rs.
Look Mr.
B has collected Rs.
27,000 from C in the name of tax
He is keeping Rs.
18,000 in his pocket because he has already delivered Rs.
18,000 to the government
The government says keep the remaining Rs.
18,000 in your pocket and complete your recovery
And Rs.
9,000 is being split between the central and state
governments between the central and state governments
Yes You can understand it this way
The margin of Rs.
50,000 is being divided by Rs.
Half of it is being delivered to the government
But show me Rs.
27,000 in the bill because you have to collect Rs.
18,000 from C and keep it in your pocket
If you show me Rs.
9,000 in the bill you will give it to the government
How will you recover your Rs.
Okay We will discuss this a little further
A little further
We will discuss this a little further
Let's see
This is Mr. A. I will keep the same scenario. This is Mr. B
and this is Mr. C. Mr. A made a sale of Rs. 1 lakh.
On the request of the government, he added 18% GST to the
bill.
The rates are different. 5, 12, 18, 28. We are taking 18 as
an example.
What is the rate of which product? Don't get into this mess.
Look at the process. He made a bill of Rs. 1 lakh 18
thousand.
Mr. B gave Rs.
1 lakh 18 thousand.
Who did he give the entire payment to?
To Mr. A.
This was when the seller was in Haryana and the buyer was
also in Haryana.
Mr. A will keep Rs. 1 lakh in his own pocket.
And who will get the remaining Rs.
18 thousand?
Rs. 9 thousand will go to the central government, Mr. Modi.
And Rs. 9 thousand will go to the state government of
Haryana, Mr. Manohar Lal Khattar.
Is it okay? Yes. This is what we have learnt so far.
After that, I will talk about the future.
In the previous example, C was also in Haryana.
C was also in Haryana.
So, there was no problem.
But, in this example, I will change C.
For example, C is in UP.
C is in UP.
Now, see what changes will come.
I will keep the figure as it is.
Now, B sold C, which is in UP.
He added his margin and sold it for Rs. 1 lakh 50 thousand.
He put 18% GST in the bill.
Rs. 27 thousand.
So, the total price of the invoice is Rs. 177000.
Now, C is paying Rs. 177000 to Mr. B.
Smart kids, tell me.
How much money will B keep in his pocket?
Will you still say that he will keep only Rs.
1.5 lakh?
Or will you say Rs.
1.5 lakh plus Rs.
18 thousand?
What is your answer?
Rs. 1.5 lakh plus Rs. 18 thousand.
He paid Rs. 18 thousand to Mr. A.
At the time of his purchase.
At the time of B's purchase, the government has given him
the right to keep Rs.
18 thousand in his pocket.
Because if the government takes this money, it will be
taxed twice on the same value.
The government says, we don't want twice the tax.
Better than this, we will return the money we took from B
and bring it back to zero.
Okay? Now, how much money is left?
Rs. 9000.
Right? In the last example, what was done with this Rs.
Sir, this Rs. 9000, Mr. B had given to the central
government.
Out of this, Rs. 4500 came.
What you were asking.
And the state government had given Rs. 4500 to Manoharlal
Khattar ji.
MLK government.
Because everything was in Haryana.
Only one state government was involved.
Haryana.
Now, what is the problem here?
Here, this Rs. 4500 is not going to be touched by anyone.
This belongs to Modi ji.
But this Rs.
4500, this Rs.
4500 from the state government, along with Manoharlal
Khattar ji,
Yogi ji also comes in the picture.
Because a person from UP is involved in this sale.
Who is from UP?
Buyer.
So, Manoharlal Khattar ji also comes in the picture.
Oh, sorry.
Yogi ji too.
He says, the buyer is from here.
So, I should get this Rs. 4500.
And who is this Khattar ji?
He says, the seller is from Haryana.
The sale was done by Haryana.
So, this Rs. 4500 should be given to Haryana.
Now, Haryana versus UP.
There was a fight between Manoharlal Khattar ji and Yogi ji.
There was a fight over Rs. 4500.
Sir, they shouldn't fight.
Rs. 4500 is the country's biggest leader.
This is just an example of Rs. 4500.
There are incidents worth lakhs of crores.
Right? And where will that state go from?
If you give money to the other one?
So, now you must be having a doubt in your mind.
You must be thinking that this Rs. 4500 should also be
given.
No, this is not possible.
This is not possible.
Do you know why?
Because Yogi ji presented a very good logic.
These two were fighting.
Modi ji came.
Modi ji said, what is the matter?
So, Yogi ji and Manoharlal Khattar ji said, we want this Rs.
We want it.
Modi ji said, take your side one by one.
So, the logic that Yogi ji gave was very good.
Listen to what Yogi ji said.
Yogi ji said,
The Rs.
4500 that is coming out, which person's pocket is it coming
out from?
Which person will be the ultimate victim?
We saw in the last example, who is the ultimate victim of
tax?
The last person.
The one who consumes the goods and keeps it with him, and
does not sell it further.
So, I can say, who is the victim of this Rs.
It is Mr. C.
Say, yes or no?
Yes.
And Yogi ji said,
Brother, if money has come out of the pocket of a person
from my state, then it should be used for the welfare of my
state, for development, for development.
Say, yes or no?
What is the logic in this?
Is it good or not?
It is good, sir.
Do you understand?
The government of the state where the person is from, will
give tax to the government of that state.
If you take this Rs.
4500 from C and send it to Haryana, then it will be
foolishness.
The person from UP is giving tax to the government of
Haryana.
Did he vote for the government of Haryana?
Did he elect the minister of the government of Haryana?
No.
Then? Yes.
That is why,
Modi ji understood the logic of Yogi ji, and he refused to
give it to MLK.
And he said,
Yogi ji, this Rs.
4500 is your right.
So, if there is an inter-state transaction, the seller is
in another state, Haryana, and the buyer is in another
state, UP.
In such a case, the central government will get half of the
tax money, and the other half will be given to the
government of that state, where who is there?
Seller or buyer?
Buyer.
Where is it?
Buyer.
That is, consumer.
Okay? Okay.
So, this is the whole picture framed here.
Okay, sir.
I will tell you a few more things.
This B, let's start with the discussion of B.
When B bought the goods from A, how much tax did B pay?
You should remember the figure.
How much did he pay?
Rs. 18,000.
And how did that Rs.
18,000 reach the government?
How did A deliver it?
Rs. 9,000 was delivered to the central government, and Rs.
9,000 was delivered to the state government.
The purchase of Rs.
18,000 that B made, which was paid by GST, you have to make
a journal entry of this.
You have to make a journal entry of this.
In B's books.
You have to make a journal entry.
You will make an entry in Bicholia's books, which is buying
and selling at the same time, so that both work.
Sir, we know the journal entry of the purchase.
Sir, the purchase account gets debited.
I said, okay.
The purchase account will be debited.
Will you write Rs.
1 lakh or Rs.
Tell me.
How much is the purchase?
Rs. 1 lakh or Rs.
Some people think that Rs.
1 lakh or Rs.
18,000 should come, because Rs.
18,000 is going out of pocket.
Rs. 1 lakh or Rs.
18,000 will come, but in the purchase, only Rs.
1 lakh will come.
Because the value of the goods is only Rs. 1 lakh.
The value of the goods is not Rs. 1 lakh or Rs. 18,000.
The value of the goods is Rs.
1 lakh, so you will write Rs.
1 lakh in the purchase account.
If Rs. 18,000 is there, then GST is on top of it.
That is a different thing.
So, in the purchase account, only Rs. 1 lakh will come.
But, how much will Mr.
A, the creditor, be given by B?
Rs. 1 lakh or Rs.
Rs. 1,18,000.
So, how much will Mr.
A credit in his books?
Rs. 1,18,000.
Sir, look here.
The rule of double entry has been violated.
Debit is Rs. 1 lakh, credit is Rs. 1,18,000.
That means we will have to debit Rs. 18,000 more.
Yes, we will debit Rs. 18,000 more.
How? We will do it in two parts.
Rs. 9,000 and Rs. 9,000.
We will write Rs. 9,000 in the name of central GST.
Central GST Account Debit.
And we will write Rs. 9,000 in the name of State GST
Account Debit.
This person is saying that I have purchased Rs. 1,00,000.
And I am giving Rs. 1,18,000 to Mr. A.
The remaining Rs. 18,000 will be transferred to the Central
Government and State Government.
To the Central Government and State Government.
Rs. 9,000 and Rs. 9,000.
And one more word will be used.
Input CGST.
Input SGST.
Input SGST indicates that B has purchased.
While purchasing, B has paid Rs. 9,000 and Rs. 9,000.
Rs. 18,000.
Although, it will be transferred to A only.
But B can write in his book that I have transferred.
Because the money came out of B's pocket.
Sir, tell us one thing.
Why did you debit this?
Which rule did you apply for debit?
Some people will think.
In this, this rule is applied.
Debit All Expenses.
This is also an expense.
We have paid tax.
Therefore, both taxes should be debited according to Debit
All Expenses.
Although, I am telling you.
This is not the rule of Debit All Expenses.
These two have been debited because these two are your
assets.
And assets are always debited.
How is the asset, sir?
Tomorrow, when C will be sold by B.
Will you get this Rs.
18,000 refund or not?
Will it come back in B's pocket or not?
According to the rule.
It will definitely come, sir.
And B is a GST registered person.
He is also a businessman.
He knows that I will sell tomorrow.
Therefore, he will get that money.
will come back in your pocket that's why we debit them as
assets and leave
Sir, if the sale doesn't happen tomorrow then this money
will remain here you won't get it back what's the problem?
this money will remain in these accounts if you get it
back, these accounts would get set off and that money would
reach the bank if you don't get it back, then that money
will remain here what's the problem? ok sir so this was B's
general entry buying goods now what will he do? now what
will he do? he will sell the goods and tell me the entry
for selling tell me the entry for
sale debtor account debit to sales account who is the
debtor? C so he will enter
C account debit to sales account how much is the sale price
written here? 1,50,000 or 1,77,000 tell me, what do the
people say?
Sir, write the value of the goods as you said only 1,50,000
but how much will he ask from C? 1,77,000 so the debit is
1,77,000 but the credit is only 1,50,000 what about the
remaining 27,000? what about the remaining 27,000?
Sir, that too will have to be credited 13,500 and 13,500
output CGST account
and output
SGST account means input is used for purchase and output is
used for sale this is the first case when all three are in
Haryana when all three are in Haryana all three are in
Haryana ok now what will happen next? now what will happen
next? what will happen on the third number? what will
happen on the third number?
out of Haryana sale that is not happening that is the next
example listen very carefully listen very carefully
A will make his payment
B will make his payment so let's make the payment who is
the creditor?
Mr. A
Mr. A account debit 2
Mr. A account debit 2 bank account how much will be the
payment? how much will be the payment? 1,18,000 1,18,000
1,18,000 1,18,000
money will come from C money will come from C 1,77,000
1,77,000 bank account debit 2 bank account debit 2 very
good Mr.
C account 1,77,000 1,77,000 1,77,000 1,77,000 how much will
be the payment? how much will be the payment? 9,000 9,000
18,000 18,000 9,000 9,000 4,500 4,500
4,500 bank account debit 2 9,000
what is the word here? output or input? output output
output Here, you made it your liability.
Here, you made it your liability.
How much did you credit it with?
Rs. 13,500, Rs. 13,500, Rs. 27,000.
You said, we have to send Rs. 27,000 to the government.
Out of which, how much did you send to the government?
Rs. 4,500 and Rs. 4,500.
Rs. 9,000.
What about the rest?
What about the rest of the money?
That means, in the name of output CGST, you have taken Rs.
9,000 more.
How much did you take in total?
Rs. 13,000 and funds.
Out of which, how much did you send to the government?
Rs. 4,000 and funds.
What about the rest of Rs.
Similarly, the output SGST account that you have,
Rs. 9,000, the balance that is remaining, what will that be?
This will be set off from your input asset.
Input CGST account debit.
Sorry, input CGST account, Rs. 9,000.
To input SGST account, Rs. 9,000.
I will try to explain it to you in a better way.
Now, pay attention.
Here, Rs. 1,77,000 came from Mr. C.
The government jumped in and said,
Son, give us Rs. 27,000 GST.
Because the government had seen this person, that this
person has output CGST and output SGST credited to him.
Rs. 13,500 and Rs. 13,500.
Rs. 27,000.
Okay? So, the government came to ask for Rs.
B said,
Mr. Modi, how much do you ask?
Output CGST.
He said, you have made a liability in your books.
Give us Rs. 13,500.
B said, Mr.
Khattar, how much do you ask?
Mr. Khattar said, you have made a liability in your books.
In the name of Rs. 13,500.
Give us Rs. 13,500.
Give us Rs. 27,000.
Do you know what he will say?
He will say, listen, out of this Rs.
Rs. 9,000 and Rs.
I have already given you.
Through Mr. A.
So, I will not pay those Rs. 9,000 and Rs. 9,000 from the
bank.
I will use the assets that I have created by debiting on
top, in the name of input CGST and input SGST.
I will use them.
And I will pay you the remaining Rs. 9,000 from the bank.
I will pay you the remaining Rs. 9,000 from the bank.
I have divided this entry into two parts.
Here, 5 and 6.
If you find, then this entry is giving the same effect.
Output CGST debit Rs. 4,500 and Rs. 9,000.
That means, output CGST debit is Rs. 13,500.
Output SGST debit Rs. 4,500 and Rs. 9,000.
That means, output SGST debit is Rs. 13,500.
Yes, sir.
To input CGST, to input SGST, to bank, Rs. 9,000, Rs.
9,000, Rs. 9,000.
To input CGST, to input SGST, to bank, Rs. 9,000, Rs.
9,000, Rs. 9,000.
That means, I have paid only Rs. 9,000 for the liability of
output CGST and SGST.
And I have used the remaining Rs. 18,000 of my assets to
finish the liability.
The name of that asset is input CGST and input SGST, which
I create assets by paying GST at the time of purchase.
In this way, we will have general entries.
So, this was the conceptual discussion on how GST will
flow, how money will go to the government, from where it
will be collected, who will keep how much money in his
pocket, how much money will go to the government, and then,
what will be the general entries.
Right? Now, let's start the discussion further.
Now, let's start the discussion further.
Do you have any doubt?
Entry number 3.
In the entry number 3, we are paying the creditor.
How much did you buy?
Rs. 1,00,000.
Mr. Account Debit to Bank Account.
Okay? Okay.
In entry number 3, we are paying the creditor.
Now, there is one more discussion.
Let's heat up some more topics.
Guys, look at my second case.
I told you about my second case.
This is the second case.
Finally, what did I tell you?
Here it is.
Let me write it down again.
There is no space here.
Let me write it down again.
Look at it again with me.
A, B, C.
A sold goods to B.
What is the price?
Rs. 1,00,000.
GST will be Rs. 18,000.
The bill will be Rs. 1,18,000.
A is in Haryana.
B is in Haryana.
And C is in UP.
B will pay Rs. 1,18,000 to A.
A will keep Rs. 1,00,000 in his pocket.
And Rs. 9,000 will go to Mr. Modi.
And Rs. 9,000 will go to Mr. Khattar.
Because there is no dispute here.
When it comes to A and B, there is only one state
government involved, Haryana.
That's why Rs. 9,000 will go to Mr. Khattar.
If we follow the same rule, that Rs.
9,000 will go to the central government and Rs.
9,000 to the state government where there is a buyer.
So, who is the buyer in this case?
B.
And where is B?
In Haryana.
So, where will Rs.
9,000 go to us?
To the state government.
Right? Right, sir.
Okay.
Next thing.
What I taught you earlier,
I said that when B will sell C, first it will sell for Rs.
1,00,000 and not Rs.
And that too, will take 18%,
Rs. 27,000 GST and make a bill of Rs.
1,77,000 and give it to C.
And C will pay Rs. 1,77,000 to B.
Right? How much will B keep in his pocket?
Rs. 1,50,000 plus Rs.
18,000 GST which he has already paid to the state
government through A.
And how much will he send to the government?
How much will he send to the government?
Mr. B, how much will he send directly to the government
from C to Rs.
The remaining Rs. 9,000.
How much did he collect from C?
Rs. 27,000.
How much did he keep in his pocket?
Rs. 18,000.
How much will he send to the government?
Rs. 9,000.
And in Rs.
I had told you that
And the remaining 4500 will go to Modi ji
And the remaining 4500 will go to Khattar ji or Yogi ji?
It will go to Yogi ji
It will go to the state government of UP
Because where is the buyer?
In this incident, in UP
Now a problem arises
What? He is sending 4500 to whom?
Tell me, to whom?
To Yogi ji
How did a person from Haryana send tax to Yogi ji?
Don't think that to send tax
You have to catch a bus and go to Yogi ji's office
And get caught there
This is an online payment, there are registrations
And every state's website is different
Every state's GST Act is different
Everything written is the same
But every state has implemented it in its own way
So this person, Mr.
If he has to send tax to Yogi ji
Then he will have to register on the UP portal
He will have to take GST in UP
So that he will be under the supervision of the UP officer
Whether the money is being delivered on time or not
Say yes or no
The person from UP will want to keep an eye on this
Will want to keep an eye on it
Because tax is going to come to UP from here
He should not do anything wrong
How can a person from UP keep an eye on a person from
Haryana?
Until he has to register
Then he will have to register
This is what I am trying to say
So a person from Haryana will take registration in UP?
And tomorrow, listen
Assume that there are sales in 10 states of the country
There are customers in 10 states
And there will be buyers in 10 states
Then B will have to send money to the government in 10
states
Half of the tax
Then what will happen?
Then he will take GST registration in 10 states
The officers of 10 states will keep an eye on him
Think how complex things will become
Sir, things will become complex
You are right
Do you know the solution to this?
Yes, excellent answer
The solution to this was
Modi ji said, do one thing B
Give me the entire Rs 9000
Who will B give the entire Rs 9000 to?
Central Government
He will give Rs 9000 to Modi ji
Namaste He just has to register in the central government
He will get it in Haryana
It happens in the central government
What will Modi ji do?
He will keep Rs 4500 from this
In the funds of the central government
And the remaining Rs 4500
Who will be responsible for transferring the money?
Modi ji
The government will transfer the money
This man's problem will be solved
He will get the Rs 9000 to Modi ji
Is it okay?
This is called
Integrated GST
IGST IGST is nothing new
IGST is nothing new
IGST is made from CGST plus SGST
The only difference is
If it is the same state
CGST and SGST money
Will be transferred to both the governments
But if it is an interstate game
Then both of them
Will be named as IGST
Meaning B has got the entire Rs 9000 to Modi ji
This will be called IGST
Then this IGST will be opened
From which Rs 4500 CGST will be kept in Modi ji's pocket
And Rs 4500 SGST
Will be transferred to Yogi ji
If we combine CGST and IGST
And put a cover on it
Then it will be called IGST
If we combine CGST and SGST
And put a cover on it
Then it will be called IGST
And when the money
Will be transferred to Modi ji
Modi ji will remove the cover
And what will be left inside?
CGST and SGST
Rs 4500 will be kept in Modi ji's pocket
And Rs 4500 will be transferred to Yogi ji
This is IGST
Nothing else
Okay sir, so when we will discuss further
That when will we put IGST
When will we put CGST and SGST
Now you know
If the seller and buyer are in the same state
Then we will open two different accounts
CGST and SGST
In the time of purchase, CGST and SGST
And in the time of sale, CGST and SGST
But if the seller and buyer
Are in different states
For this transaction, CGST and SGST are there
CGST is made by combining both
But only one account will be opened
With the name of IGST
Integrated GST
Means This person C
If C is also
Registered in GST
Then C will be written as
Input IGST
And B
Which is selling
Will be called as Output IGST
Output IGST
Okay So this was it my dear friends
As far as our general entries
Which are concerned in telly
Although I have told you this debit credit extra
I have told you this debit credit extra
You know in telly
When we offer purchase voucher
Then we have to write party name, item
There is no debit credit in that
Still I have explained for your understanding
Basically what I have told you
Is more than enough
And you will understand the purchase and sale entries
With GST
How we will pass them in telly
Okay Same state will be there
Which accounts will be opened for seller and buyer
Input CGST, Input SGST
For purchaser
And Output CGST, Output SGST
For seller
If both states are different
Then one account will be opened
For purchaser, Input IGST
And for seller, Output IGST
Knowing this is enough
But for entry in telly
I will make you do like this
That automatic rate will be calculated
You know in market
There are many people available
Who will teach you GST entry in general voucher
Very lovingly
But what you have to do in that
You have to put manually
And you will see how much amount is written in bill
Then you will enter it
This is the work of new learners
If you are expert
If you want to work on expert level
We will do entry of GST in telly like this
For purchaser and seller
For any bill
Your rate will be automatically calculated
And it was very buzzed
All the entries you have done
Whenever you make ledger
Sir, why we are not making GST applicable
When will that day come when we will put GST
Now I will tell you where will be GST
How will be rate and how will be GST
Okay sir
In next clip we will do
For purchaser and seller
And for interstate
Keep some words in mind
I will tell you at last
If same state is being transacted
Seller and buyer
Both are in same state
So we call it
INTRA Intrastate transaction
And if seller and buyer
In different states
Transaction is happening in different states
So we will call it
INTER Interstate transaction
Okay sir
See you in next clip
Thank you and Bye Bye