Why is the output GST a liability
Output GST is a liability because it represents the amount of GST that a business collects from its customers on sales made during a particular period. When a business sells goods or services, it charges GST to its customers, and this collected amount of GST is held as a liability until it has remitted to the government.
To visit https://www.gst.gov.in/
The collected GST becomes a liability because the business has an obligation to remit it to the government within a specific time frame. Until the GST remits to the government. The business is responsible for holding it as a liability and must report it as such in its financial statements.
Therefore, output GST considers a liability until it remits to the government. Once the GST has remitted to the government, it is no longer a liability, and the business can claim input GST credit for the amount of GST paid on purchases made during the same period.
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