New setoff rule to be applied - please guide
This query is : Resolved
Quick Summary
Pragna Marfatia
(Querist)
15 May 2021
I have credit of (current ITC and Ledger + cash credit) as given below:
IGST - 4500
CGST - 900
SGST - 5800
I have to pay tax liability, say as given below:
IGST - 10000
CGST - 1500
SGST - 1500
So as per new set off rule,
IGST liability of 10000, to be set off using ITC of 4500 of IGST+900 of CGST+4600 of SGST
Then my credit will be only for SGST - Rs. 1200
So I need to pay tax as CGST - Rs. 1500, SGST as Rs. 300 (1500-1200).
I will be greatful if you can guide as to this understanding is correct.
Regards,
IGST - 4500
CGST - 900
SGST - 5800
I have to pay tax liability, say as given below:
IGST - 10000
CGST - 1500
SGST - 1500
So as per new set off rule,
IGST liability of 10000, to be set off using ITC of 4500 of IGST+900 of CGST+4600 of SGST
Then my credit will be only for SGST - Rs. 1200
So I need to pay tax as CGST - Rs. 1500, SGST as Rs. 300 (1500-1200).
I will be greatful if you can guide as to this understanding is correct.
Regards,
CA Altamush Zafar
(Expert)
15 May 2021
Yes it is correct
CMA Poornima Madhava
(Expert)
17 May 2021
Yes, agree with Altamush
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