Why SGST electronic credit ledger is not allow to pay for IGST?

Seram Baris (3 Points)

06 July 2021  

I do retail business by ordering from local distributor (i.e. Inward supply Intra-State B2B) and  I sell it to outside state registered firm (Outward supply Inter-State B2B). From my distributor, I receive ITC as CGST and SGST as it is intra-state. However as I am always dealing with outside registered firms, I am, allowed to utilized only CGST to pay for the IGST. So my SGST component will keep increasing as it is unable to use.

Why is the system like this? Is there any workaround to utilize my SGST component to pay for IGST?