Igst credit set off

This query is : Resolved

Prem Chandra Thakur (Querist)
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04 April 2017 Dear Sir,

I want to know whether the IGST credit of BIhar would be allowed to set off the IGST liability in Jharkand if we are only registered dealer in West Bengal.

Thanks & Regards
Prem Chandra Thakur

Rajesh Kumar

Rajesh Kumar (Expert)
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04 April 2017 IGST credit received can be used to pay IGST, CGST or SGST in that order.

Prem Chandra Thakur

Prem Chandra Thakur (Querist)
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05 April 2017 Sir,
I have heard the news that One state of IGST credit would not be set off for the liability of another state. it will be set off for the same state.
Kindly clarify us.
Thanks & Regards
Prem Chandra Thakur

Rajesh Kumar

Rajesh Kumar (Expert)
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05 April 2017 That does not appear to be correct. IGST shall be levied on inter-state supply. When IGST is levied, no CGST/SGST is levied. CGST is levied only on intra-state sale [Section 9(1) of CGST Bill]. On intra-state supply CGST (max. upto 20%) and SGST (max upto 20%) can be levied. Only IGST shall be levied on inter-state supply. Rate shall not exceed 40%.
Whatever credit is availed on IGST can be used for payment of IGST. Balance if any can be used for payment of CGST. Further balance left, if any can be used for payment of SGST. Thus there is no state IGST credit.
How this IGST shall be distributed among the states is for Govt. or Finance commission to decide. As far as assessees are concerned, use of credit of IGST is seamless.

Prem Chandra Thakur

Prem Chandra Thakur (Querist)
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05 April 2017 Sir
It is ok but not statisfy.

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