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Setoff query

21 May 2018

while filing gstr 3b i have excess Igst credit, which should be firstly setoff with cgst payable and then balance should be setoff with Sgst payable,
but i have made setoff Igst half for Cgst and remaining half for Sgst would it leads to any problem.
please help me.

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14 Replies

vaibhav somani (40 Points)
Replied 21 May 2018

No because u have set off igst firstly whole towards cgst and then balance to sgst no matter at what proportion

Vinay Vallalatla (134 Points)
Replied 21 May 2018

but i have made wrong setoff, what is remedy now?

Vinod Babu (24191 Points)
Replied 21 May 2018

For which month are you doing setoff. Now system will do the setoff automatically. No need for manual setoff.

Vinay Vallalatla (134 Points)
Replied 21 May 2018

I have already done setoff in February month, as said above.

Vinod Babu (24191 Points)
Replied 21 May 2018

Igst credit should be adjust with igst.
Secondly cgst with cgst.
Thirdly sgst with sgst.

Vinay Vallalatla (134 Points)
Replied 21 May 2018

As i have excess credit of igst, which should be firstly adjusted with cgst later balance with Sgst,

buy i have adjusted equally.

Pankaj Rawat (GST Practitioner) (55032 Points)
Replied 21 May 2018

As per section 49 CGST Act

a] 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 as the case may be, Union territory tax, in that order;

So as per.act you have setoff amount wrong

Vinay Vallalatla (134 Points)
Replied 21 May 2018

now what i has to do?

Anirban Sinha (CA in service) (727 Points)
Replied 21 May 2018

In your case your sgst liability should be greater and cgst liability is less........in that case you have to adjust in next tax period and pay interest only on the sgst amount that is short paid.....

Vinay Vallalatla (134 Points)
Replied 21 May 2018

doesni need to reverse the setoff which i have done

Anirban Sinha (CA in service) (727 Points)
Replied 21 May 2018

Yes you need to setoff in next tax period........

Vinay Vallalatla (134 Points)
Replied 21 May 2018

i have 50000 Igst credit
and liability Cgst 30000 and sgst 30000
I have made setoff igst credit to cgst and sgst 25000 and 25000 respectively, in the February month,
now what should i do to rectify it?

Vinod Babu (24191 Points)
Replied 21 May 2018

Setoff in next return

Anirban Sinha (CA in service) (727 Points)
Replied 21 May 2018

In the next return the CSGT liability should be less by Rs 5000 and SGST liability should be more by Rs 5000 and you should pay interest on Rs 5000 of SGST.