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ITC GST Utilisation

Priya Kashyap (Student) (7048 Points)

21 February 2019

which will be utilised against input IGST(1800) IN ORDER AND HOW?
OUTPUT TQX LIABILITY
SGST- 1350
CGST- 1350

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10 Replies

Rakesh Bandal (Self Employed and Agriculture) (1349 Points)
Replied 21 February 2019

First set off CGST and then SGST

Priya Kashyap (Student) (7048 Points)
Replied 21 February 2019

any reasonable utilisation logic behind it?

Anshuman Basu (account -GST) (1547 Points)
Replied 21 February 2019

1st utilise IGST from cgst output for RS 1350/ after adjustment of IGST balance IGST utilise from sgst for RS 450/-. Ur tax liability sgst fro rs900/-

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Priya Kashyap (Student) (7048 Points)
Replied 21 February 2019

why cgst first 🤔?

Risvan P K (Auditor) (48 Points)
Replied 21 February 2019

As per section 49A of CGST act, with effect from 1st February 2019, Payment of CGST/SGST should be made by utilising the credit of IGST, then credit of CGST/SGST respectively.

Here in your case, first set off IGST credit of Rs.1350 against output tax liability of Rs.1350 of CGST. And then set off the balance credit available in IGST (Rs.450) against output tax liability of Rs.1350 of SGST, and pay the balance SGST liability of Rs.900 in cash

2 Like

satish Motipalli (Student CA Final ) (119 Points)
Replied 21 February 2019

Yes correct answer risvan

1 Like

Shaurya Sahrawat (85 Points)
Replied 21 February 2019

IGST & CGST, Both are taxes for centre. So, ITC of IGST is utilized for CGST first.
This could be the logical reason.

1 Like

pritesh (CA Final student) (7101 Points)
Replied 21 February 2019

agreed with risvan sir

1 Like

CA Naveen Chand (Chartered Accountant) (12729 Points)
Replied 22 February 2019

	igst	cgst	sgst
output	0	1350	1350
inputs	1800	0	0
net	-1800	1350	1350
set off	1800	1350	450
laibility	0	0	900