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GST INPUT Credit Utilisation New Rules

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Chandrakant Parmar

52 Points Posted on 11 May 2023

Dear sir ,

Please give guide utilisation of New Amendment Rules in GST Act and RCM Payment sett off against Cash Ledger Balance?

as per Mind utilisation as per below correct?

Tax Liabilities. Sett of input credit

IGST. First IGST second -CGST
and Third -SGST

CGST. First- IGST , Second -CGST

SGST. First- IGST , Second- SGST

i am correct or not ?

Replies (3)

Quick Summary

This discussion clarifies the new rules for utilising GST input tax credit (ITC). It explains the order in which IGST, CGST, and SGST credits can be set off against tax liabilities. The consensus is that IGST credit should first be used against IGST, then CGST, and finally SGST. Similarly, CGST and SGST credits are primarily used against their respective taxes before being applied to IGST. The discussion also confirms that RCM (Reverse Charge Mechanism) liabilities can only be settled using the cash ledger.

Jeetu Kodwani

Consultant

291 Points Posted on 11 May 2023

ITC of IGST can be utilised with IGST first
then CGST and then SGST

ITC Of CGST can be utilised with CGST first then IGST

ITC of SGST can be utilised with SGST first then IGST

Pankaj Rawat

GST Practitioner

29904 Points Posted on 11 May 2023

Yes RCM liability can be utilized against Cash Ledger only.

& 2nd part of your query being replied by Mr. Jeetu Kodwani.

sabyasachi mukherjee

Profession

19978 Points Posted on 12 May 2023

Input tax credit not applicable in case of composition dealer.
In case the set off is towards input tax credit , it must be set off against igst cgst then sgst