Itc setoff

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Shiv Karwa (Querist)
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13 March 2019 We have cgst input 5000 sgst input 5000.
Output liab in igst 2000 cgst 5000 sgst 5000.
As per new setoff rule which tax we have to pay and how much amt

CA Anita Bhadra

CA Anita Bhadra (Expert)
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15 March 2019 49A. Notwithstanding anything contained in section 49, the input tax credit on account of central tax, State tax or Union territory tax shall be utilised towards payment of integrated tax, central tax, State tax or Union territory tax,

First Pay IGST Rs 2000/- from CGST
Then CGST Rs 3000/- from available CGST Balance of Rs 3000/-
Now SGST Rs 5000/- from available SGST input of Rs 5000/-
You have to make payment Rs 2000/- CGST liability

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Shiv Karwa

Shiv Karwa (Querist)
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15 March 2019 that means we have setoff igst input and output first

CA Anita Bhadra

CA Anita Bhadra (Expert)
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15 March 2019 Yes , That's what Sec 49 & 49A of CGST Act Says

CA Anita Bhadra

CA Anita Bhadra (Expert)
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16 March 2019 Correction in above response.
After discussions with other experts nd detailed study of Amendment - it has been revealed that CGST has to b paid first from CGST , SGST from SGST and then only if any balance available IGST can b adjusted ( from CGST nd SGST )

Whilst utilising credit , it's just opposite ( Sec 49 A ) IGST has to b utilised first

CA Anita Bhadra

CA Anita Bhadra (Expert)
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16 March 2019 In your query above - u will adjust CGST nd SGST from available balance nd pay IGST liability in cash .

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