CGST AND SGST ITC CLAIM

HI 

 

IN THE GST PORTAL IT SHOW THE CREDIT OF ITC   (CASH LEDGER AND CREDIT LEDGER )  CAN WE SETT OFF FULL ITC AVAIABLE OR IS THERE ANY NEW RULE THAT ONLY PORTION OF IT CAN BE SET OFF

MY CA  ASSITANCE TOLD BE NEW RULE HAS COME WHERE FULL ITC SET OFF IS NOT ALLOWED ONLY PART OF ITC CAN BE SETT OF 

 

PLS  HELP ITS VERY URGENT 

Replies (4)
Quick Summary
This discussion addresses a query regarding the utilisation of Input Tax Credit (ITC) for CGST and SGST liabilities. The user is seeking clarification on whether the full available ITC from both cash and credit ledgers can be set off against GST liability, or if new rules restrict this. A key point raised is Rule 86B, which limits the use of the credit ledger to discharge output tax liability to 99% if outward supplies exceed ₹50 lakh in a month, with certain exceptions. There's also a point of confusion regarding whether cash ledger credit, specifically from TDS, can be used for GST liability.

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Yes as per Rule 86B , A taxable person shall not use his credit ledger to discharge his tax liability towards output tax in excess of 99% of such tax liability in case where the value of outward supply in month exceeds 50lac excluding exempted & export sale.
And it is not applicable if :
1he has paid more 1 lac income tax in each of last 2 fy .
2. Claimed Refund more then 1 lac in preceeding fy

Yes he has paid income tax more than one lac 

I am still arguing with gst consultant 

I have cash ledger credit and credit ledger credit he could utilized both to set off my gst liability 

now he says cash ledger credit cannt be utilized because it’s is credit for TDS  I am not sure if he’s is correct because what I read that any cash or credit ledger balance can be set off against gst liability 

pls respond 

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