ITC GST Utilisation

ITC / Input 617 views 10 replies

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

Replies (10)

First set off CGST and then SGST

any reasonable utilisation logic behind it?
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/-
why cgst first 🤔?
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
Yes correct answer risvan
IGST & CGST, Both are taxes for centre. So, ITC of IGST is utilized for CGST first.
This could be the logical reason.
agreed with risvan sir
  igst cgst sgst
output  0 1350 1350
inputs 1800 0 0
net -1800 1350 1350
set off  1800 1350 450
laibility  0 0 900

 

you have to pay SGST tax in cash amounting rs 900 /-

for set off order refer sec 49(5) of cgst act for clarity...


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