Legal 1 (1 Points)
12 January 2022Hi!
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.?
NITIN SAKPAL
(Sr Executive - Indirect Taxation)
(145 Points)
Replied 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)
(4902 Points)
Replied 12 January 2022
Yes IGST ITC will be 1st set off.
Nidhi
(Chief Accountant)
(3150 Points)
Replied 14 January 2022
CAclubindia
