Master in Accounts & high court Advocate
9610 Points
Posted on 08 November 2024
Yes, you can set off the IGST liability against the SGST and CGST ITC.
According to the GST Act, you can adjust the IGST liability with the available ITC (Input Tax Credit) of SGST and CGST. As per Section 49 of the CGST Act, 2017,
"The input tax credit available on account of integration of State tax and Union territory tax with the central tax shall be apportioned integrally between the central tax and the State tax/Union territory tax."
So, you can adjust the IGST liability of Rs. 50,000 with the SGST ITC of Rs. 25,000 and CGST ITC of Rs. 25,000. This will result in a zero IGST liability.
However, please note that you should ensure the following: -
The ITC is available and not blocked or ineligible. -
The ITC is related to the same financial year. -
You have followed the correct order of set-off as per the GST Act.