ADJUSTMENT OF INTERSTATE CAPITAL GOODS ITC

MACHINERY PURCHASED FROM INTERSTATE AND ITC ON CAPITAL GOODS (i.e. IGST) CLAIMED, & IT WILL BE ADJUSTED IN 5 YEARS AHEAD.

MY TOTAL OUTWARD SUPPLY IS INTRASTATE

THEN HOW IGST ITC ON CAPITAL IS TO BE ADJUSTED ??

DUE TO GST ITC SETOFF RULES IN GSTR3B IGST IS AUTOMATICALLY SETOFF FIRST THEN CGST & SGST ??


ANYONE PLEASE HELP !!
Replies (2)
Quick Summary
This discussion addresses the complexities of claiming and adjusting Input Tax Credit (ITC) for capital goods purchased interstate under GST. The user is seeking clarification on how to utilise IGST ITC when their outward supplies are entirely intrastate. The response highlights GST rules regarding ITC set-off, explaining that IGST is automatically set off first, followed by CGST and SGST, and detailing how liabilities can be offset against available credit balances.

Pls check rule 88 for utilisation of GST input

The liability towards CGST can be set off from available balance of SGST asset.
The liability towards SGST can be set off from
available balance of CGST asset.
CGST liability can't be set off from CGST asset
SGST liability can't be set off from SGST asset.
Then remaining CGST and SGST liability to be set off from IGST asset.

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