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ITC setoff rule in igst

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Prasad Parande

30 Points Posted on 11 February 2020

I am purchasing material from other state & said material sold to in our state.

all above transactions we are claiming IGST & Paid CGST & SGST.

Please explain me how can we setoff IGST in sequence wise

If it is possible to IGST setoff in CGST & SGST (50:50) equal.

Replies (5)

Quick Summary

This discussion clarifies the rules for setting off Integrated Goods and Services Tax (IGST) against Central Goods and Services Tax (CGST) and State Goods and Services Tax (SGST). The established procedure prioritises using IGST to offset IGST first. Any remaining IGST balance can then be used to pay CGST and SGST liabilities, typically in a 50:50 ratio if not specified otherwise.

Rajat jain

student

157 Points Posted on 11 February 2020

No first u use IGsT balance to set of Cgst and if any balance left with IgSt then u used itni setoff sGst

Krishan Verma

30 Points Posted on 11 February 2020

@ Rajat jain , didn't understand this concept. kindly explain with more simple way.

Anshuman Basu

account -GST

1181 Points Posted on 11 February 2020

Suppose input IGST is rs 100/- and output cgst and sgst rs 70/- each. now setup will be first rs 100 of IGST will be setoff from cgst (100-70=30).balance igst30/- will be setoff from sgst. tax will rs 40/- of sgst