Set Off of Liability

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This discussion clarifies how to set off IGST, CGST, and SGST liabilities based on input and output tax credits. It explains that IGST must be fully utilised before CGST/SGST can be offset, detailing the process with specific figures. The guide also covers the calculation of the remaining ITC balance to be carried forward to the next month.

seeta

seeta (Querist)
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26 February 2020 Particulars IGST CGST SGST
Opening Input 100 0 0
During the month 150 50 50

Output during the month 100 25 25

(i) How to set off
(ii) How much ITC balance carry forward for net month

CA Anita Bhadra

CA Anita Bhadra (Expert)
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27 February 2020 U can utilised CGST / SGST only after the input tax credit available on account of integrated tax has first been utilized fully towards such payment.(Rule 49A of CGST Act (Amendment) 2018)
Thus use 150 from IGST and carry forward 50 50 50 IG CG & SG respectively

seeta

seeta (Querist)
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27 February 2020 Carry Forwad IGST 100 & CGST 50 & SGST 50

Please reply,

CA Anita Bhadra

CA Anita Bhadra (Expert)
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27 February 2020 It means you can use IGST 100, CGST 50 & SGST 50 for further outward liability

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