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GST return related

Rajat jain (student) (215 Points)

07 February 2021

if a person have ITc credit in his election ledger should he is liable to pay any tax for that because after self assessment for January month he is still have left ITC credit.

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6 Replies

CA. Sourav Sarkar (Chartered Accountant ) (24583 Points)
Replied 07 February 2021

No if ITC left in ledger after payment of tax then no such payment shall made against ITC balance

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CA Rashmi Gandhi (Chartered Accountant) (86323 Points)
Replied 07 February 2021

No need to pay tax if liability after using credit Ledger is nil.

Shivam RC (Student) (23683 Points)
Replied 07 February 2021

You can utilize your full ITC balance ( as available in your e-credit ledger ) to dispose off your Output Tax Liability ( other than Interest and Penalty ). There will be no requirement of payment of liability in CASH.

However kindly note that as per Notification No. 94/2020 - Central Tax, dated 22nd December 2020, Rule 86B has been introduced which has imposed 99% restriction of ITC available in Electronic Credit Ledger of Registered Person. This means that 1% of output tax liability needs to be paid in "CASH" w.e.f 01/01/2021 if your aggregate turnover exceeds Rs. 50 lakhs in that particular month.

Rajat jain (student) (215 Points)
Replied 07 February 2021

If all output liability is settoff from ITC then I have to fill any Return under QRMP scheme..

CA Rashmi Gandhi (Chartered Accountant) (86323 Points)
Replied 07 February 2021

No, you have to file Quarterly 3B & 1

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Bhavika Kothari (CA) (1258 Points)
Replied 12 February 2021

As per GST Notification No. 94/2020 - Central Tax, dated 22nd December 2020, Rule 86B, 1% of output tax liability needs to be paid in "CASH" w.e.f 01/01/2021 if your aggregate turnover exceeds Rs. 50 lakhs in that particular month. If your turnover is less than 50 lakhs then you can set off your entire liability through input tax credit (ITC), no need to pay any cash