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Input tax credit

Yasir (article assistant ) (466 Points)

06 April 2021

Input tax credit ledger February 2021 balances
IGST 2860
SGST 1122
CGST 1122

Output Tax Liability March 2021
CGST 2552
SGST 2552
how to set off balance against ITC?

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4 Replies

RENU SHARMA (1388 Points)
Replied 06 April 2021

You can set off tax liability of igst with igst, cgst and sgst
cgst tax liability with igst and cgst
sgst tax liability with igst and sgst

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zishan mandli (203 Points)
Replied 07 April 2021

First pay igst half of each i.e cgst and sgst....then remaining tax liability with appropriate cgst and sgst

CMA Poornima Madhava (CMA) (13112 Points)
Replied 07 April 2021

Originally posted by : Yasir
	Input tax credit ledger February 2021 balancesIGST 2860SGST 1122CGST 1122Output Tax Liability March 2021CGST 2552SGST 2552 how to set off balance against ITC?

CGST: 2252 - 1430 (half of IGST ITC) - 1122 (CGST ITC) = liability nil

SGST: 2252 - 1430 (half of IGST ITC) - 1122 (SGST ITC) = liability nil

Bhavika Kothari (CA) (1258 Points)
Replied 09 April 2021

You need to first set off the CGST liability with CGST credit and SGST liability with SGST credit then set off the liabilities with IGST credit. You will get these details auto-filled by GSTN