Save Rs 588 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

IGST and CGST distribution.

451 views

Save Share

Join Us Follow Us Add as Source

GANESH BHAT

18 Points Posted on 05 February 2024

How does the IGST & CGST gets distributed to the states.

Replies (8)

Quick Summary

This discussion clarifies the distribution of IGST and CGST to states. It highlights the correct procedure for adjusting excess Input Tax Credit (ITC), advising to first use it against CGST and then SGST. Incorrect adjustments can lead to payable tax and notices like DRC-01A. A link is provided for further understanding of GST revenue sharing between the central and state governments.

Saravanan nagaraj

463 Points Posted on 06 February 2024

If you have excess ITC in IGST, you should adjust on CGST first, then, rest of the ITC can be used on SGST.

If you adjust wrongly, any payable raise. You will get notice from state government DRC-01A, u/s 73 CGST act.

Thanks 🙏

RAJA P M

"Do the Right Thing...!!!"

128162 Points Posted on 06 February 2024

@ Mr GANESH BHAT,

PLEASE GO THROUGH THE LINK... YOU CAN GET SOME CLARITY ABOUT DISTRIBUTION OF GST TO CENTRE AND STATE GOVERNMENT...

https://vakilsearch.com/blog/gst-share-between-central-and-state/#:~:text=The%20GST%20revenue%20is%20shared,%25%20CGST%20and%209%25%20SGST.