Cross gst credit

ITC / Input 147 views 3 replies

bhavisha

accountant

103 Points Joined May 2017

in gst igst credit can settle with sgst or cgst , even if sgst and cgst input credit in credit ledger , as we settlement we face the error message and receive that first to clear sgst and cgst credit then cross credit is applicable. This is ok or we should go for complaint to gst online.

if any one hv idea regarding this may suggest.

Replies (3)

RAJA P M

"Do the Right Thing...!!!"

128116 Points Joined January 2015

IGST Credit will be settle as following...

ITC in IGST -> 1) IGST (fully) 2) CGST (fully) 3) SGST...

subhagan sreerangam

7059 Points Joined January 2017

Explanation is correct and good I like bit

Shivam RC

Student

23688 Points Joined November 2017

Agree with Raja Sir's explanation...

As per the Provision of SECTION 49(5) of CGST Act 2017 - Amount of INPUT TAX CREDIT available in Electronic Credit Ledger of the registered person can be utilized as follows :

1). CGST CREDIT will be first used to clear CGST Liability and balance, if any, would be utilized for clearing off IGST Liability.

2). SGST CREDIT will be first used to clear SGST Liability and balance, if any, would be used to clear off IGST Liability.

3). Manner of Utilization of IGST CREDIT :

( i ). IGST CREDIT - IGST LIABILITY.
( ii ). IGST CREDIT - CGST LIABILITY.
( iii ). IGST CREDIT - SGST LIABILITY.

NOTE : Cross set-off of CGST Credit with SGST Liability and vice versa cannot be done.