Itc credit

This query is : Resolved

velumani (Querist)
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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)
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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)
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12 June 2017 it is correct sir?

CA Shubhanshu Jain

CA Shubhanshu Jain (Expert)
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12 June 2017 Yes you can adjust ITC of IGST with CGST/SGST Payable.

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