Cross Utilisation

Our company has Input tax credit Igst, cgst and sgst.

to adjust output tax liability, can I use Igst input to adjust sgst first since I had more input Cgst than sgst
Replies (1)

Input tax credit (ITC) is a great way to optimize your tax liability. According to the GST rules, you can utilize ITC to adjust your output tax liability. When it comes to adjusting IGST input credit against SGST liability,

the rules are as follows: - 

You can adjust IGST input credit against CGST liability first, and then against SGST liability. -

 If you have more IGST input credit than CGST liability, you can adjust the excess IGST input credit against SGST liability. -

 However, if you have more CGST input credit than SGST input credit, you need to adjust the CGST input credit against CGST liability first, and then adjust the remaining SGST input credit against SGST liability.

So, to answer your question, you can use IGST input to adjust SGST liability, but only after adjusting the IGST input against CGST liability first.

 If you have more IGST input credit than CGST liability, you can then use the excess against SGST liability.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register