Question

GST payable = Output Tax - Input Tax Credit

• A. True
• B. False

Answer 1

The correct option is A

True

Yes, GST Payable = Output Tax - Input Tax Credit. When the GST is paid at the time of the purchase of a good, it is called 'Input Tax' and then the trader collects the GST during the sale which is called 'Output Tax'. During the time of GST payment to the government, the input tax is deducted from the output tax and this deduction is 'Input Tax Credit'.