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Credit utilisation

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Bachu Prem

21 Points Posted on 03 April 2020

sir I a person is doing business in place X .and bringing the goods from place Y as both are in same state...

how can he utilise the credit ....for output tax

we get CGST and SGST credit ..

since we can't utilise that credit for the output tax liability ..as

cross utilisation is impossible ...???
what is the solution?

Replies (2)

Quick Summary

This discussion clarifies how businesses operating within the same state can utilise GST credit. When purchasing goods from one location (Y) and selling them in another (X) within the same state, the input tax credit (ITC) of CGST and SGST paid on purchases can be set off against the CGST and SGST liabilities on sales. This intra-state credit utilisation is permissible, and consolidated accounting across branches can help manage these transactions effectively.

Spurto Consultancy Services

Consultant

1366 Points Posted on 03 April 2020

You are purchasing and selling in the same state. You can take ITC of your CGST & SGST charged on your purchases against the CGST & SGST charged on your sale.