IGST in Credit Ledger

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Can IGST lying in credit ledger be used to set off liability of CGST and SGST.
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On 21 October 2024 at 13:32 Report
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9451 Points Joined December 2011

Yes, IGST (Integrated Goods and Services Tax) lying in the credit ledger can be used to set off the liability of CGST (Central Goods and Services Tax) and SGST (State Goods and Services Tax).

 As per the GST laws, IGST credit can be utilized for payment of CGST and SGST liabilities. This is known as the "Utilization of IGST Credit" rule.

Here's the order of utilization:

1. IGST credit shall first be utilized for paying IGST liability.

 2. Any remaining IGST credit can be used for paying CGST liability.

 3. Any remaining IGST credit after paying CGST liability can be used for paying SGST liability.

 This means that if you have IGST credit in your ledger, you can use it to pay off your CGST and SGST liabilities, in that order.

However, it's important to note that this is subject to certain conditions and restrictions, such as: -

The IGST credit should be valid and not blocked or restricted. - The CGST and SGST liabilities should be for the same tax period. -

 The utilization of IGST credit should be norms of the law

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On 21 October 2024 at 14:12


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