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Manner of utilisation of ITC of IGST

CA Surbhi (CA Practice ) (28 Points)

07 March 2022

ITC of IGST is to be utilise with CGST and SGST in any manner or first have to utilise with CGST in full and then if remain to be utilised with SGST or in any proportion??

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11 Replies

Saurabh Dubey (Accountant) (64 Points)
Replied 07 March 2022

While Utilising in 3B you can see that IGST auto adjsut with IGST first then CGST if remain available adjust with SGST. but you can also utilize proportion. Its up to you, but I Suggest to go with auto utilized.

Eswar Reddy S (CFO- at NHTF) (58213 Points)
Replied 07 March 2022

You may use 50% for CGST & 50% for SGST.

You can also utilise for CGST liability & balance can be utilised for SGST

Pratick Datta (53 Points)
Replied 07 March 2022

Rule 88A: Order of utilization of input tax credit:- Input tax credit on account of integrated tax shall first be utilised towards payment of integrated tax, and the amount remaining, if any, may be utilised towards the payment of central tax and State tax or Union territory tax, as the case may be, in any order.

Section 49A: Notwithstanding anything contained in section 49, the input tax credit on account of central tax, State tax or Union territory tax shall be utilised towards payment of integrated tax, central tax, State tax or Union territory tax, as the case may be, only after the input tax credit available on account of integrated tax has first been utilised fully towards such payment.

So available IGST credit in the credit ledger should first be utilized towards
payment of IGST. Remaining amount if any, can be utilized towards the
payment of CGST and SGST/UTGST in any order and in any proportion.

Eswar Reddy S (CFO- at NHTF) (58213 Points)
Replied 07 March 2022

The query has no details about IGST Output, ITC may be used for CGST & SGST at the discretion of assessee

Imthias ahamed Kormath (910 Points)
Replied 08 March 2022

If u purchase from other state and same supply to other any state u may firstly utilise credit as Igst.No any invoice exist u can not utilise ITC.

CA Puja Sharma (Chartered Accountant) (4874 Points)
Replied 08 March 2022

Yes, IGST ITC have to be 1st exhausted.

1st utilise your IGST ITC with IGST output

Then, set off the IGST ITC with CGST output and

Now set off the remaining IGST ITC with SGST.

Eswar Reddy S (CFO- at NHTF) (58213 Points)
Replied 13 March 2022

If IGST Output is not there then you can directly utilise for CGST and SGST

Imthias ahamed Kormath (910 Points)
Replied 13 March 2022

Igst output collected by him from others,so it will be collected and b paid to the govt account while filing gstr 3B.If it paid by customer the will b bear the loss.

CA Altamush Zafar (GST Consultant) (15907 Points)
Replied 13 March 2022

First set off against IGST liability. The remaining can be setoff at any proportion between CGST & SGST

Eswar Reddy S (CFO- at NHTF) (58213 Points)
Replied 13 March 2022

Based on the query , there is no IGST output . So the IGST Output can be utilised for CGST & SGST at your discretion

Imthias ahamed Kormath (910 Points)
Replied 14 March 2022

Set off of ur ITC limitted to ur Purchase only as per an invoice.u collect it's output from other customers,which will be paid to govt account , while filing GSTR 3B by u cash paid.