Calculation of GST and VAT
This section explains the calculation of GST and VAT. Here you will be able to claim the input tax credits or the refunds for all the expenses that you incur in the development.
The GST INPUT CREDITS/REFUNDS section displays all the cost heads, when the expenses of your development are occurring, what is the GST component for each of the expenses, the refunds that you will receive, and the month in which you will receive your refunds.
The GST will be calculated based on the incoming and outgoing cash flows.
The DEVELOPMENT REVENUE field, in the GST LIABILITY/PAYMENT section, displays the amount of GST that you will have to pay to the tax authority of your country, when you sell your development.
The OTHER INCOME - DEV field in the GST LIABILITY/PAYMENT section, displays the GST applicable to any other income that you may have from the project.
The GST field displays the net GST liability for your entire project.
The amount in the brackets indicates the amount that can be claimed back.
The FINANCE & INTEREST COSTS is “Zero” because no calculations are done in the Finance Section. However, there can be expenses that you do for your finance costs, example brokerage fee, for which GST may be applicable. Then you can claim that GST back. This is explained in detail in the next section.
If you want to include GST in any cost heads, select Yes in the Master Data sheet.