Offset the cgst credit completely before cross utilization s

This query is : Resolved

Quick Summary

Issue in GSTR-3B setoff due to rule requiring full utilization of CGST credit before cross using SGST/IGST. Discussion clarifies correct ITC adjustment sequence: first use IGST, then fully offset CGST, and only then adjust SGST to avoid errors.

BRDCCR

BRDCCR (Querist)
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28 August 2017 Dear Members,
The following error message is appearing while setoff liability in Form GSTR-3B.

Offset the CGST Credit completely before cross utilization SGST credit against IGST tax liability

Find below details of our liability & Credit available online.

Details of Liability
IGST 0.00

CGST 16,42,739.00

SGST 16,42,739.00
-

Details of ITC
IGST 26,17,538.00

CGST 8,73,318.57 ( Tran-1 credit of CGST 872996.57 include)

SGST 322.00

Please do the needful at your earliest.

RAJA P M

RAJA P M (Expert)
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28 August 2017 Yeah... First of You ll be adjust your CGST fully. Next adjust your SGST.....

BRDCCR

BRDCCR (Querist)
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28 August 2017 I was setoff liability as per below. Kindly suggest that the it is right or not?

Liability CREDIT Set off

IGST CGST SGST
2617538.00 873318.57 322.00
IGST NIL

CGST 1642738 769421.00 873318.00 0.00

SGST 1642738 1642416.00 0.00 322.00

RAJA P M

RAJA P M (Expert)
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28 August 2017 You ll try to this following way...

DESCRIPTION "TAX PAYABLE" ITEGRATED TAX CENTRAL TAX STATE/UT TAX CESS

"INTEGRATEDTAX" 0 0 0 0 0

CENTRAL TAX 1642739 769421 873318 0 0

"STATE / UT TAX" 1642739 1642417 0 322 0

CESS 0 0 0 0 0

BRDCCR

BRDCCR (Querist)
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28 August 2017 I was apply the same but below error reflected. ( my CGST credit show in point)

Offset the CGST tax Liability before cross utilization of IGST credit against SGST tax liability

RAJA P M

RAJA P M (Expert)
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28 August 2017 Oh... This is not good.

Liability :
Integrated Tax : 0
Central Tax : 1642739 - You ll adjust Integrated Column to Central Tax row Rs. 769421 and Central Tax Column to Central Tax Row Rs. 873318. After your CGST liability is 0 (Zero)

State Tax : 1642739 - You ll adjust Integrated Column to State Tax Row Rs. 1642417 and State Tax Column to State Tax Row Rs. 322. After your SGST liability is 0 (Zero).

Finally your IGST ITC Balance Rs. 205700...

RAJA P M

RAJA P M (Expert)
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28 August 2017 Sir.,
Understand or not...?

BRDCCR

BRDCCR (Querist)
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28 August 2017 Yes I was apply the same but still same error is reflected.

RAJA P M

RAJA P M (Expert)
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28 August 2017 Oh...
Sir, First of you ll move your curser to "CGST - ITC" column.... What figure you ll be shown there Rs. 322 or Rs. 873318...?
Reply here...

BRDCCR

BRDCCR (Querist)
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28 August 2017 itc balance shown as 873318.56

RAJA P M

RAJA P M (Expert)
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28 August 2017 You ll be show the screen shot...?

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