Festive Savings Are Here. Get 10% OFF on All CCI Pro Plans. Subscribe Now!

Offset CGST or SGST/UTGST liability first with IGST credit before utilizing CGST credit

1265 views

Save Share

Financepie

other

56 Points Posted on 19 May 2024

Trying to file GSTR 3b , i have ITC credit and added cash required to pay the GST. I have IGST credit available in the credit ledger from purchase of capital goods which i cannot claim.

But when i press "make payment/post to credit ledger" i get error which says "Offset CGST or SGST/UTGST liability first with IGST credit before utilizing CGST credit"

I cannot use the IGST credit available , but the portal does not allow me to pay partly via usable ITC in credit ledger and partly with cash in cash ledger.

Please help.

Attached File : 3361988 20240519224534 igst of rs.pdf downloaded: 100 times

Replies (2)

Quick Summary

This discussion addresses a common GSTR 3B error where the system prevents offsetting CGST or SGST/UTGST liability with CGST credit when IGST credit is available. The core issue is Rule 88A of the CGST Rules, which mandates that IGST credit must be used first against IGST liability, and any remaining IGST credit can then be applied to CGST and SGST/UTGST liabilities. The portal's automated offset follows this rule, leading to an error if not adhered to. To resolve this, ensure IGST credit is utilised against CGST and SGST/UTGST liabilities before attempting to use CGST/SGST credits or cash payments.

CA Anoop Kumar Sharma

Accounts Manager

1470 Points Posted on 20 May 2024

Yes, two way possible in setoff:-

1) If we used for setoff first CGST or SGST than end of the setoff, IGST credit will be Nil.

2) If we used for setoff first IGST than end of the setoff no problem.

In your case IGST balance will remain than it will create Error. If you don't want this capital goods ITC than first you will reverse otherwise error will continuously showing.

Aashok Kumar Sharma

Finance/Compliance Consultant

75675 Points Posted on 07 November 2026

Rule 88A sequence:

• IGST credit must first be used fully for IGST liability. Any balance can then be used for CGST and SGST/UTGST, in any order and proportion (Rule 88A, from 29 March 2019; Circular 98/17/2019).

• CGST credit: for CGST, then IGST. It can't be used for SGST.

• SGST credit: for SGST, then IGST, only after IGST credit is exhausted. It can't be used for CGST.

• So with IGST credit available and only CGST/SGST liability, use IGST credit against CGST and SGST in any split. Then use CGST/SGST credits, and pay the remaining in cash.

• The portal's auto-populated offset follows these rules. You can edit within them.