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Utilisation of Input Tax GST

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21 Points Posted on 12 January 2022

Hi!

I have input tax of SGST and IGST of Rs. 1 lac each. Output tax CGST 25000+ SGST 25000 and IGST 50000.

Can I use SGST Input of rs. 75000 for output tax of SGST 25000 and IGST 50000

and use of IGST 25000 for payment of CGST of rs. 25000

After this balance input Rs. SGST rs 25000 and IGST 75000

GST portal allow this but rule says IGST to be set off first.

Whether it is possible.?

Replies (3)

Quick Summary

This discussion clarifies the rules for utilising GST input tax credits, specifically SGST and IGST. The consensus is that IGST must be fully utilised against IGST output tax first. Any remaining IGST balance can then be used against CGST or SGST output tax in any proportion. SGST input tax can be used to offset SGST output tax.

NITIN SAKPAL

Deputy Manager - Indirect Taxation

92 Points Posted on 12 January 2022

HI !

With the new rules in place, it is mandatory to utilise the entire IGST available in electronic credit ledger before utilising ITC on CGST or SGST. The order of setting off ITC of IGST can be done in any proportion and any order towards setting off the CGST or SGST output after utilising the same for IGST output.

Regards,

CA Puja Sharma

Chartered Accountant

3528 Points Posted on 12 January 2022

Yes IGST ITC will be 1st set off.

Nidhi

Chief Accountant

1673 Points Posted on 14 January 2022

U have to first set of IGST against IGST,
than balance Rs. 50K against SGST or CGST as per your convenience.
Suggestions :
Set off IGST 50K against IGST,
bal 50K IGST against 25K CGST
and CGST against CGST
So, Lastly C/F credit .CGST 75K and IGST 25K