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Regarding Gst Itc

Kamlesh Tolani (accountant) (562 Points)

15 September 2020

Respected members
Igst payable 2000
Sgst Payable 14000
Cgst Payble. 14000

Igst credit 10000
Cgst credit 5000
sgst credit 5000

now question is
igst set off against cgst and sgst 50-50 am I right or not.
please suggest me.

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6 Replies

Shinoj Davis (112 Points)
Replied 15 September 2020

Igst credit use to set off in the order of igst payable, if any balance cgst payable, if any balance sgst payable

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 15 September 2020

Yes, you are right...
First use 2000 IGST credit for IGST payable, than remaining 8000 credit you can use 50-50 or in any proportion as per your choice.
In your case 50-50 for CGST/,SGST is best
otherwise you can use it's 30-70, ,60-40. ect...in any proportion ( there is no restriction)

Kamlesh Tolani (accountant) (562 Points)
Replied 15 September 2020

Thank u very much sir

Shivam RC (Student) (23683 Points)
Replied 15 September 2020

As per the Provision of Section 49A of the CGST Act 2017 read with Section 49B of the Act, ITC of IGST needs to be fully exhausted first towards payment of Output Tax and the remaining balance will be utilized towards seting off CGST & SGST liability "in any manner / order".

A new Rule 88A of the CGST Rules 2017 was inserted vide Notification No. 16/2019 - Central Tax, dated 29th March 2019, to give effect the manner / order of utilisation of ITC.

So accordingly you have to set off Rs. 2000 Output IGST liability with Rs. 2000 Input IGST credit and the balance of Rs. 8,000 can be used to set-off CGST or SGST output liability in "any manner/order/proportion."

Regards,
Shivam RC.

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