My CGST payable 2560.00 and SGST payable 2560.00. I have IGST input 4095.00 and CGST input earlier 4084.00. when I went to payment set off total payable automatically shown only SGST Rs. 1025.00. My question is if I settled manually Total SGST with IGST input and balance IGST (4095-2560) = 1535 with CGST then my payable will be Nil. But system did not admitted to do that. Why?
3 Replies
Deepak Gupta
(CA Student)
(15922 Points)
Replied 22 February 2020
| IGST | CGST | SGST | ||||
| Tax Payable | 2,560.00 | 2,560.00 | ||||
| ITC balance | 4,095.00 | 4,084.00 | ||||
| CGST paid from IGST ITC | 2,560.00 | |||||
| SGST paid from IGST ITC | 1,535.00 | |||||
| Balance ITC | - | 4,084.00 | ||||
| Balance Payable | - | - | 1,025.00 | |||
| First Set off IGST liability with IGST ITC | ||||||
| Then use balance IGST ITC to set off CGST/SGST | ||||||
| Basically, you first have to exhaust IGST ITC | ||||||
| Only restriction is that CGST ITC cannot be used to set off SGST liability or vice-versa | ||||||
ABHIJIT MANNA
(ACCOUNTANT)
(447 Points)
Replied 22 February 2020
Ok, but is it possible for 2nd option?
IGST CGST SGST
Tax Payable 2,560.00 2,560.00
ITC balance 4,095.00 4,084.00
_____________________________________________________
CGST paid from IGST ITC 1535.00 1025.00
SGST paid from IGST ITC 2560.00
_____________________________________________________
Balance ITC 3059.00
Balance Payment 0
______________________________________________________
Deepak Gupta
(CA Student)
(15922 Points)
Replied 22 February 2020
Remaining amount of IGST credit may be utilized for payment of CGST or SGST in any order.
Though I haven’t faced this manual set-off yet practically. But I think as per law, this process of set-off holds good.
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