Adjustment of cgst sgst igst

24 April 2019
How to pay the liability of CGST SGST IGST with each other ? Whether anyone can be adjusted with any one ? or whether some rule is there for setting-off the liabilities ?

CA Anita Bhadra (Expert)
24 April 2019
There is a Rule rather , there are Rules formed , amended and amended time to time.

CBIC vide circular No. 98/17/2019 – GST dt 23 Apr 2019 clarified manner of utilization of GST ITC Credit .

The newly inserted rule 88A in the CGST Rules allows utilization of input tax credit of Integrated tax towards the payment of CGST/SGST in any order subject to the condition that the entire input tax credit on account of Integrated tax is completely exhausted .

It has been clarified by CBIC today that after IGST get exhausted , IGST credit can be utilsed for CGST / SGST in any order and IN ANY PROPORTION

Thumb Rule of ITC utilisation is that SGST & CGST can not be utilized with each other

24 April 2019
Respected Anita Madam whether certain rules are expected on the basis of which any liability of gst can be set-off with any ITC available with sgst or cgst or igst. In such circumstances SGST ITC will pay CGST liability and vice versa. Hope u will please give me some concrete idea on this issue.

CA Anita Bhadra (Expert)
24 April 2019
Yours IGST liability can be set off against IGST/ CGST & SGST ( First exhaust IGST & then used others)
CGST can be set off against CGST & IGST
SGST can be set off against SGST & IGST

25 April 2019
But sgst wont set off cgs and the same way cgst wont set off sgst. Is it like that only ? with kindest regards,

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