21 January 2022
Respected Sir, (A) I have output GST liability as IGST - 20000 CGST - 4000 SGST - 4000 I have credit ledger (ITC) as IGST - 22000, CGST - 1000SGST -1000 I have cash credit as IGST - 1000 CGST - 500 SGST -1300 can I offset IGST liability by using 1000 cash credit, so 20000-1000 -19000. So credit balance available as IGST is 3000, which I will utilise to offset CGST and SGST liability CGST - 4000-1000-500-2500 (from IGST credit balance) SGST - 4000-1000-1300-500 (from IGST credit balance) so tax to be paid is only SGST - 1200 Is this correct as shown in (A) or (B) I have to first offset IGST only by IGST credit balance only and till such time I can not use cash IGST balnce to offset IGST liability and hence IGST credit balance cannot be used to offset CGST and SGST liability. Please guide.
CAclubindia
