Itc credit

This query is : Resolved

velumani (Querist)
Follow

12 June 2017 Dear Sir/Madam IGST Purchase Rs.10000/- and + Input Rs.1800/- = Purchase Value Rs.11800/- . sold the goods(Local) Rs.12000 + SGST Rs.1080/- CGST+ Rs.1080/- = Inv.Amt Rs.14160/- . Can i ITC adjust the GST Rs.1800/- for this Transaction. How i Paid the Tax,
CGST Payable Tax ?
SGST Payable Tax ?

How We take the ITC IGST Rs.1800/-

CA Shubhanshu Jain

CA Shubhanshu Jain (Expert)
Follow

12 June 2017 hello

Following is the order to utilize Input tax credit under GST.

1. For making Payment of IGST
> First Utilize IGST, if any
> Then CGST
> Then SGST

2. For making payment of CGST
> First utilize ITC balance of CGST
> Then IGST

3. For making payment of SGST
> First utilize ITC balance of SGST
> Then IGST

and Tax credit of SGST and CGST can't be cross utilized.

So, accordingly in your query ITC of IGST can be adjusted in following manner.

- ITC of IGST = Rs. 1800
- CGST Payable = Rs. 180 (1080-900)
- SGST Payable = Rs. 180 (1080-900)

Above response in on the basis of assumption that 50% is utilized for CGST and balance 50% for SGST, you can adopt other combinations also for adjusting IGST.

velumani

velumani (Querist)
Follow

12 June 2017 it is correct sir?

CA Shubhanshu Jain

CA Shubhanshu Jain (Expert)
Follow

12 June 2017 Yes you can adjust ITC of IGST with CGST/SGST Payable.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now