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How to apply setoff on portal

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Aaditya Diwaker

6 Points Posted on 12 August 2021

agar output igst-700, output cgst- 1400, output sgst-1400
input igst-2800 input cgst-210,input sgst-210.

iski itc set off kse hogi plz ek baar bta do.

1)meri query ye h ki rules k hisab se output igst-700 ko itc igst-2800 se minus krne pr credit input. bachega-2100 nd yha igst ki liability khtm ho gyi then nxt

2) output cgst-1400 ko setoff kia input cgst 210 se to to output cgst bacha 1190

3) ase hi isme bhi out sgst ko input sgst se kia 1400-210=1190.

mujhe yha ye nhi smjh aa ra ki isko portal pr kse apply krenge pls mujhe iska ans bta do kyoki m itc setoff krna seekh ra hu

and advance m thanks

Replies (2)

Quick Summary

This discussion explains the correct procedure for applying GST Input Tax Credit (ITC) set-off on the portal. It clarifies that IGST credit must be fully utilised against IGST output liability before CGST or SGST liabilities can be offset using IGST credit. Only after IGST is exhausted can CGST and SGST credits be used for their respective outputs.

CA Uma Sankar

Member

75 Points Posted on 12 August 2021

You cannot adjust cgst or sgst credit unless all the credit of igst has already been set off and nothing is left in igst ledger.

in your example, as u said u have to set off 700 igst with igst credit itself and balance u will b left with 2100 credit. the balance 2100 shall fully be utilised to set off either for cgst or for sgst or for both in whatever may b the ratio u want and then only u can touch the cgst and sgst credits of 210 each.