SGST, Credit ledger balance

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This query is : Resolved

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This discussion clarifies the rules for using SGST credit balances. You cannot directly offset SGST credit against CGST liabilities, or vice versa. However, SGST credit can be used to pay off IGST liabilities. It's also confirmed that SGST credit can be used to offset IGST or SGST liabilities, but not CGST.

govind

govind (Querist)
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08 September 2020 Dear, sir
I have used all CGST Amount in my credit ledger.I have a credit balance of SGST, now how can I use it in my next return with CGST.

Lekhraj sood

Lekhraj sood (Expert)
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08 September 2020 You can not use SGST credit to pay up your CGST liability.You can only use this in paying your IGST or CGST liability.

govind

govind (Querist)
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09 September 2020 Please clear the sentence as its showing dual meaning

Lekhraj sood

Lekhraj sood (Expert)
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09 September 2020 Yeah,sorry for the mistake.Read it as 'you can only use this in paying your IGST or SGST liability'.

c.bakshi

c.bakshi (Expert)
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09 September 2020 YES, AGREED WITH MR. SOOD. LIABILITY OF SGST CANNOT SET OFF AGAINST CGST AND VICE VERSA. HOWEVER, BALANCE OF CGST AND SGST CAN BE SET OFF AGAINST IGST.

govind

govind (Querist)
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09 September 2020 My SGST CREDIT BALANCE IS APROX 15 LACK, How can it be withdrawn

Lekhraj sood

Lekhraj sood (Expert)
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10 September 2020 Use it for clearing liability of IGST . First set off SGST balance against IGST liability.

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