Igst input credit

This query is : Resolved

MOHANAN .V.P. (Querist)
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04 March 2019 Hello,

I understand that with effect from 1st Feb,2019, IGST input can be adjusted against IGST and CGST Output tax and not against SGST.

If I do not have enough IGST /CGST output tax to adjust the entire IGST ITC, what is the option available and this will affect my cashflow.

Also would like to know the logic behind this decision.

Anyone please clarify.

Thank you very much.

Mohanan

CA Anita Bhadra

CA Anita Bhadra (Expert)
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05 March 2019 Your statement is partially true . You need to adjust in sequence - First from IGST , then from CGST and after that from SGST ..
Logic behind this is that Government wants to exhaust huge unutilised IGST balance lying with it .

You are right , it will effect cash flow & working capital of a businessman

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MOHANAN .V.P.

MOHANAN .V.P. (Querist)
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07 March 2019 Thank you very much.