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

Computation of minimum net GST to be paid in cash by Prakash Limited for the month of October 2025 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 23.10.2025, only within 1 year from date of issue of tax invoice by supplier. Computation of eligible ITC available 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 Input "A" procured on 13th October 2024 Nil Nil Nil Inputs "B" procured on 10th June 2025 22,500 22,500 Nil Input "C" procured on 1st October 2025 3,750 3,750 Nil Input "D" procured on 8th October 2025 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.