IGST and CGST adjustment

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This query is : Resolved

Quick Summary

This discussion clarifies how to manage IGST and CGST when your sales are primarily IGST but purchases use CGST/SGST. It explains that CGST credit can be used for CGST and IGST liabilities, while SGST credit can be used for SGST and IGST liabilities. The system allows flexibility in how you utilise these credits against IGST, ensuring you can effectively offset your tax obligations.

Prapti

Prapti (Querist)
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08 May 2024 Hi Sir,

Scenario is We have more IGST sales and purchases are mostly from CGST and SGST. so since IGST is more, we have to pay it even when there is credit available. how does this aspect works. Also if most of the sales billing is IGST then how the credit will be utlised?

Dayal

Dayal (Expert)
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09 May 2024 Please refer to offset rules
CGST can be used against CGST and IGST
SGST can be used against SGST and IGST
The system allows to change the proportion in which you want to utilize CGST and SGST against IGST