New Sett Off rule under GST

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This query is : Resolved

Quick Summary

This discussion clarifies the new GST set off rules, particularly concerning the utilisation of input tax credits (ITC) for IGST, CGST, and SGST liabilities. It explains the priority order for set off: IGST ITC is used first against IGST liability, followed by CGST ITC, and then SGST ITC. If any IGST liability remains after utilising all available credits, it must be paid in cash. The thread also addresses how to utilise SGST credit when IGST and CGST liabilities are already set off, confirming it can be carried forward for future use with no time limit.

seeta

seeta (Querist)

22 May 2021 IGST CGST SGST
OUTWARD TAX 3300000 600000 600000
INWARD 1000000 1400000 1400000

HOW SET WILL BE DONE IN THIS CASE?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

22 May 2021 For IGST Output – First set off thru ITC of IGST, then CGST & then SGST. (10 lacs+8 lacs(balance CGST)+ 8 lacs(balance SGST). Pay balance 5 lacs IGST in cash.

seeta

seeta (Querist)

22 May 2021 Sir,
How 5 Lakh comes
Please clarify me

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

22 May 2021 It's 7 lacs payable.

seeta

seeta (Querist)

22 May 2021 Its means that if you have credit in SGST Credit Ledger than you can utilized in Set Off of IGST Liability when CGST Credit is NIl

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

22 May 2021 Yes you are right..........