IGST utilise questions

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This discussion clarifies how businesses can use IGST paid on imports to offset their local CGST and SGST liabilities. The key principle is that IGST input tax credit must be fully utilised against any IGST liability first. Once IGST liability is cleared, the remaining IGST credit can be applied to CGST and SGST liabilities in any proportion, before using CGST or SGST input credits.

deepak

deepak (Querist)
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21 December 2023 One client import of goods from outside country and paid IGST to the custom department. so can we take IGST input credit against local liability SGST and SGST on basis of GSTR2B OR need to go for IGST refund?

RAJA P M

RAJA P M (Expert)
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21 December 2023 Yes, You can adjust with the liability of CGST and SGST...

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)
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14 January 2024 The order of utilisation of IGST credit post offset to IGST liability can be in any order or proportion between CGST/SGST but the only pre-condition is exhausting IGST completely before using other credits. Hence,it can be concluded that any taxpayer must begin with set-off process starting with ITC of IGST and utilise it completely before proceeding to utilise the ITC of CGST or ITC of SGST.

deepak

deepak (Querist)
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14 January 2024 Our case only import IGST credit available major part and and we want to use against local cgst and sgst liabilities.

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