Solution
GST
Class 11 - Accountancy
1. Input GST is credited because GST credit is allowed only when goods are sold. Goods taken by the proprietor is not a sale but are
drawings.
2. Full form of SGST is State Goods & Service Tax.
3. Input GST account is credited because goods given as charity and goods being damaged or lost in fire or theft is not a sale, i.e.,
GST is not collected. Therefore, Input GST will not be set-off against Output GST.
4. Full form of CGST means Central Goods & Service Tax.
5. IGST (Integrated Goods And Service Tax) is a tax imposed on all Inter-state supplies of both import and export of goods and
services and is supervised by the IGST Act.
6. CGST is a tax imposed on supplies of goods and services within the state-imposed by the central government and administered by
the CGST Act.Example-Sale of goods within same state
7. The full form of IGST is Integrated Goods & Service Tax.
8. Two central taxes that have merged into GST are excise duty and customs duty.
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9. CGST, SGST, IGST
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10. Two advantages of GST are: decrease the cost of goods and reduces tax invasion.
11. Two-state taxes that have merged into GST are purchase tax and VAT.
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12. i. GST paid (Input GST) is treated as assets till it is set off against GST collected (output GST).
ii. GST collected (output GST) is payable to the government after setting it off against GST paid. Hence, it is a liability.
iii. In case, where GST paid is not allowed to be set off against output GST, it is accounted as cost.
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13. i. IGST (Integrated GST) is levied on inter-state supply of goods and/or services, e.g., if the seller is located in Delhi and the
purchaser is located in Bihar, IGST will be levied.
ii. CGST (Central GST) and SGST (State GST) is levied on intrastate (within state) supply of goods and/or services, where both
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the seller and purchase are located in some state.
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