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Credit utilization

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Jyoti Narang

Kkk

1204 Points Posted on 22 December 2020

if i have extra credit in cgst and payment of sgst is to be paid then cgst can be utilised for payment of sgst.but on portal payment is required even if there is extra cgst credit available.

Replies (4)

Quick Summary

This discussion clarifies that CGST input tax credit cannot be used to offset SGST liability, and similarly, SGST credit cannot be used for CGST. Each tax head must be settled independently. While CGST liability is first adjusted by CGST credit, then IGST, SGST liability is adjusted by SGST credit first, followed by IGST. Direct utilisation of one tax credit against the other is not permitted on the GST portal.

Vinod Pawar

2 Points Posted on 22 December 2020

CGST input credit cannot be utilised against SGST or vice versa.
You have to make the payment of SGST.

ayusmita

Tax consultant

5895 Points Posted on 22 December 2020

CGST LIABILITY first adjusted by cgst and if not adjusted by only cgst then it adjusted by IGST
same SGST LIABILITY first adjusted by SGST and if not adjusted then IGST