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Rule ITC setoff 88A

02 August 2019

I am in TamilnaduITC SETOFFV Rules w.e.f ? and another one
we have an Igst credit note that is adjustable in Cgst or carry the Next month

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17 Replies

Lalit Goenka (GST Practitioner) (117 Points)
Replied 02 August 2019

Mr. Lingam,

Please elaborate the concern.

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Dharma Lingam (72 Points)
Replied 02 August 2019

inputCgst& Sgst =50000& igst =280000
output chat&sgst=90000&igst190000
Credit Note in igst = 62000

explain this

Lalit Goenka (GST Practitioner) (117 Points)
Replied 02 August 2019

Credit Note for Sales Return?

Dharma Lingam (72 Points)
Replied 02 August 2019

sorry that is an Debiite note I have mentioned in party Invoice

Lalit Goenka (GST Practitioner) (117 Points)
Replied 02 August 2019

Means you have returned the Goods to the seller?

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Dharma Lingam (72 Points)
Replied 02 August 2019

yes Exactly

Lalit Goenka (GST Practitioner) (117 Points)
Replied 02 August 2019

Mr. Lingam,

Then your Input of IGST would get reduced by 62000.

Input of CGST/SGST=50000 & IGST=218000 (i.e. 280000 - 62000)

Output of CGST/SGST=90000 & IGST=190000

Output of IGST 190000 would get set off with Input of IGST 190000 (Input IGST of 28000 would remain)

Output of CGST/SGST 90000 would get set off with Input of IGST 28000 (in any order or proportion) say, 14000 each.

Output of remianing CGST/SGST i.e. 62000 would get set off with Input of CGST/SGST 50000 say, 25000 each.

Output of remaining CGST/SGST i.e. 12000 needs to be paid in Cash say, 6000 each.

Set Off can be made in below mentioned order:

First, ITC of IGST needs to be used to set off IGST Liability.

Second, ITC of IGST needs to be used to set off CGST or SGST Liability, in any order or proportion. Make sure that ITC of IGST is exhausted before moving ahead.

Third, ITC of CGST or SGST can be used to set off other liability as applicable in below mentioned order.

ITC of CGST with CGST then IGST

ITC of SGST with SGST then IGST

You can refer to the below link for more details.

https://www.cbic.gov.in/htdocs-cbec/gst/Circular-98-17-2019-GST.pdf

Dharma Lingam (72 Points)
Replied 02 August 2019

I can't understand actually Igst Excess 28000/- it's dived to chat& sgst 14000 but y have reduced Each 28000/-

Lalit Goenka (GST Practitioner) (117 Points)
Replied 02 August 2019

Input of CGST/SGST=50000 & IGST=218000 (i.e. 280000 - 62000) Output of CGST/SGST=90000 & IGST=190000

Is CGST/SGST mentioned here is for both or each?

Lalit Goenka (GST Practitioner) (117 Points)
Replied 02 August 2019

If it is for each:

If it is for both:

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Dharma Lingam (72 Points)
Replied 02 August 2019

I thing y said 52000 we have to paid amount on this month

Lalit Goenka (GST Practitioner) (117 Points)
Replied 02 August 2019

Yes, as you dont have that much of ITC available with you

Dharma Lingam (72 Points)
Replied 02 August 2019

Somebody said first set-off the igst after cgst then will clear the sgst but as per formula excess amount will be divided in cgst & sgst which one is correct? pls clarify that and also need to know Wef. date in Tamilnadu