As per the CGST Act 2017, Vishnu Limited was not mandatorily required to get registered, however it opted for voluntary registration and applied for…

Computation of minimum net GST to be paid in cash by Vishnu Limited for the month of February 2024 Particulars CGST (₹) SGST (₹) Output tax liability for the month 31,000 31,000 Less: Input tax credit (ITC) [Refer note below] 5,400 (IGST) 5,400 (IGST) 25,600 (CGST) 25,600 (SGST) IGST credit is utilized first for payment of CGST and SGST liability in equal proportion. CGST credit is utilized for payment of CGST liability and SGST credit is utilized for payment of SGST liability. Net GST payable (in cash) Nil Nil Note: Person taking voluntary registration can avail ITC on inputs contained in semi-finished or finished goods held in stock on the day immediately preceding the date of grant of registration, i.e. on 23.02.2024, only within 1 year from date of issue of tax invoice by supplier. Computation of eligible ITC available 3 Particulars CGST (₹) SGST (₹) IGST (₹) Capital goods [Person taking voluntary registration cannot avail ITC on capital goods held on the day immediately preceding the date of grant of registration.] Nil Nil Nil Inputs procured on 13th February 2023 Nil Nil Nil Inputs procured on 10th October 2023 15,000 15,000 Nil Inputs procured on 1st February 2024 11,250 11,250 Nil Inputs procured on 8th February 2024 Nil Nil 10,800 Total ITC 26,250 26,250 10,800 Note: In the above answer, minimum net GST to be paid in cash has been computed by setting off the IGST liability in equal proportion so as to minimize the amount of CGST and SGST payable in cash. Resultantly, Net GST payable (in cash) is Nil each under CGST and SGST. However, since IGST credit can be set off against CGST and SGST liability in any order and in any proportion, the same can be set off against CGST and/or SGST liabilities in other possible ways as well.