To make a stall for event management business, client bought material from within the state and paid SGST and CGST and made the stall outside the state and received IGST, so can client take credit for SGST and CGST purchase against igst liability?
To make a stall for event management business, client bought material from within the state and paid SGST and CGST and made the stall outside the state and received IGST, so can client take credit for SGST and CGST purchase against igst liability?
The client can claim input tax credit (ITC) of the SGST and CGST paid on the purchase.
The ITC of SGST and CGST can be utlized against IGST liability. According to GST rules , ITC of SGST and CGST can be used to pay IGST. Specifically:
ITC of CGST can be used to pay CGST or IGST.
ITC of SGST can be ued to pay SGST or IGST.
So, yes, the client can take credit for SGST and CGST paid on the purchases of materials against the IGST liability on the outward supply made outside the state.
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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