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Offset CGST or SGST/UTGST liability first with IGST credit before utilizing CGST credit

Financepie (other) (76 Points)

19 May 2024

Trying to file GSTR 3b , i have ITC credit and added cash required to pay the GST. I have IGST credit available in the credit ledger from purchase of capital goods which i cannot claim.

But when i press "make payment/post to credit ledger" i get error which says "Offset CGST or SGST/UTGST liability first with IGST credit before utilizing CGST credit"

I cannot use the IGST credit available , but the portal does not allow me to pay partly via usable ITC in credit ledger and partly with cash in cash ledger.

Please help.

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1 Replies

CA Anoop Kumar Sharma (Accounts Manager) (2065 Points)
Replied 20 May 2024

Yes, two way possible in setoff:-

1) If we used for setoff first CGST or SGST than end of the setoff, IGST credit will be Nil.

2) If we used for setoff first IGST than end of the setoff no problem.

In your case IGST balance will remain than it will create Error. If you don't want this capital goods ITC than first you will reverse otherwise error will continuously showing.