Is it okay to pay SGST even if IGST ITC is available

ITC / Input 333 views 5 replies

Manoj Agrawal

3 Points Joined November 2021

Hello all,

Is it okay to pay SGST amount in Cash even though I have IGST ITC credit available and utilize the IGST ITC credit for future months ITC adjustments?

So say for Aug 23
ITC available IGST - 100, CGST-10 and SGST-10
Liability - IGST 40, CGST 50 and SGST 50
So overall liability after adjusting ITC is IGST - NIL, CGST-NIL, SGST-20

However, I would like to do the following:
IGST-NIL, CGST-NIL and SGST-40 and keep balance of IGST of Rs.20 as pending in credit ledger for utilizing in next month GST return.

Is this okay?

Replies (5)

RAJA P M

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

128116 Points Joined January 2015

Yes, You can.

V SUBRAMANIAM

Tax consultant

552 Points Joined November 2020

As per your statement igst nil sgst paid 20 rs more and will be available only in sgst.
u cannot carry over igst credit except your overall liability is less than the igst credit.