SET OFF RULES WEF 01.02.2019.
As per CGST Amendment act 2018, the set off rules has been changed the updated rules are presented with examples as follows:
Section 49(2),5(c),5(d)
Amended proviso 5(c)
“Provided that the input tax credit on account of State tax shall be utilised towards payment of integrated tax only where the balance of the input tax credit on account of central tax is not available for payment of integrated tax;”;
Amended proviso 5(D)
in clause (d), the following proviso shall be inserted, namely:–– “Provided that the input tax credit on account of Union territory tax shall be utilised towards payment of integrated tax only where the balance of the input tax credit on account of central tax is not available for payment of integrated tax;
Let us understand with example:
IGST Liability: 15000.
CGST Input: 10,000.
SGST Input: 10,000.
Answer:
| Old Rule: | New Rule: |
| SGST: 10,000.
CGST: 5,000. |
CGST Input: 10,000.
SGST Input: 5,000. |
New Provision Section 49A
“49A. Notwithstanding anything contained in section 49, the input tax credit on account of central tax, State tax or Union territory tax shall be utilised towards payment of integrated tax, central tax, State tax or Union territory tax, as the case may be, only after the input tax credit available on account of integrated tax has first been utilised fully towards such payment.
Implication of such provision:
As per author view the implication of such provision is that, we have to first utilize input tax credit of IGST, and then use CGST/SGST input tax credit for the balance liability.
Let us Understand with following Chart:
As per old law: The Following sequences are required to be maintained:
| IGST LIABILITY | CGST LIABILITY | SGST LIABILITY |
| • IGST CREDIT
• CGST OR SGST CREDIT |
• CGST CREDIT
• IGST CREDIT |
• SGST CREDIT
• IGST CREDIT |
As per New Amended CGST Law: The Following sequences are required to be maintained:
| IGST LIABILITY |
CGST LIABILITY | SGST LIABILITY |
| • IGST CREDIT
• CGST CREDIT • SGST CREDIT |
• IGST CREDIT
• CGST CREDIT |
• IGST CREDIT
• SGST CREDIT |
After the insertion of new provision of section 49A it seems that the registered person needs to pay GST in certain situation which was not the case earlier.
Let us understand with example:
| Old Scenario | |||||
| Credit | Amount | Liability | Adjustment Ist | Adjustment IInd | Balance Pay |
| IGST | 20 | 0 | 0 | ||
| CGST | 20 | 30 | Rs 30-20 (CGST C) | Rs 10-10 (IGST C) | 0 |
| SGST | 20 | 30 | Rs 30-20 (SGST C) | Rs 10-10 (IGST C) | 0 |
| New Scenario | |||||
| Credit | Amount | Liability | Adjustment Ist | Adjustment IInd | Balance Pay |
| IGST | 20 | 0 | 0 | 0 | 0 |
| CGST | 20 | 30 | Rs 30-20 (IGST C) | Rs 10-10 (CGST C) | 0 |
| SGST | 20 | 30 | Rs 30-20 (SGST C) | 10 | |
| As per Author view, In Amended Scenario it seems that dealer required to pay tax as in previous scenario the liability of GST get adjusted towards inputs. | |||||
Author Bio
IF IGST LIABILITY IS HIGHER THAN IGST CREDIT THEN REMAINING IGST LIBILITY WILL BE ADJUSSTED FIRST WITH CGST CREDIT OR IT WILL BE ADJUSTED LATER AFTER ADJUSTING CGST LIABILITY WITH CGST CREDIT AS PER NEW AMENDMENT. PLEASE CLEAR THIS POINT.
THE GOVERNMENT IS NOT CLEAR ON THEIR ACTIONS REGARDING GST IMPLEMENTATIONS.
EVERY OTHER DAY THEY ARE CHANGING THEIR
POLICY AND TRYING TO LOOT THE INNOCENT
TAX PAYERS. HOW LONG THEY WILL CONTINUE
TO LOOT MONEY LIKE THIS. THE PRESENT POLICY OF GST IS NOT FRIENDLY WITH TAX PAYERS. THEIR AIM IS TO LOOT THE MONEY FROM PUBLIC AND THOSE WHO ARE SITTING ON POLICY IMPLEMENTATION IN THE DEPARTMENT ARE ABSOLUTELY NOT CONCERNED ABOUT THE PUBLIC.
July-18 IGST INPUT in GSTR3B-80000/-,CGST INPUT-20000/- and SGST INPUT-20000/- OUTPUT CGST-20000/- and OUTPUT SGST-20000/-. I wrongly taken IGST input 80000/- instead of 40000/- next month Aug-18 i have 50000/- igst input and in this month i have to reverse input 40000/-.this amount(40000) where will i show in aug-18 return can i take10000/- IGST input in GSTR3B or in IGST ITC mentioned 50000 and reverse IGST input have 40000
IGST OUTPUT = 129496
CGST OUTPUT = 630410 ( includes 10,840 RCM )
SGST OUTPUT = 630410 ( includes 10,840 RCM )
IGST INPUT = 829984
CGST INPUT = 265444 ( includes 10,840 RCM )
SGST INPUT = 265444 ( includes 10,840 RCM )
Please explain how much GST payable under what head ( IGST, CGST, SGST ). If any credit balance is there in any of 3 accounts ( IGST, CGST, SGST ), how to adjust the same in next month.
SIMPLY SAYING GOVT LOOTING PUBLIC MONEY. I AM WONDERING THERE IS NO ANY REACTION FROM PUBLIC.
please send GST set off utility in excel format new rules
inputs igst 19,46,458 , cgst 6,68,961, utgst 6,57,961
liability igst 33,07,888 , cgst 60,393 , utgst 60393
pl.inform we should pay igst rs. 1,02,518/-
is it correct
ITC:
IGST:- 12,00,000/-
CGST :- 2,00,000/-
SGST :- 2,00,000/-
LIABILITIES:-
IGST :- 30,00,000/-
CGST :- 3,00,000/-
SGST :- 3,00,000/-
HOW TO SET OFF THIS LIABILITY?
sir, how can i offset liability from tds on gst input
igst Libility 4456256/-
igst input 201050/-
cgst+sgst tds gst input 185850/-
please update.
if input in IGST Rs. 100 and payable 150/-
CGST Input 100/- and payable 150/-
SGST Input 100/- and payable 150/-
what is the method of setoff?
which tax type will be paid thru cash.
I have liability of IGST-0, CGST-4977,SGST-4977 and ITC of IGST-14400, CGST-34234, SGST-141979 when i am trying to offset my laibility as per new provision shows me this error message – offset the CGST credit against the CGST liability first before cross-utilization.If error persists quote error number LG9069 when you contact customer care for quick resolution.
ITC:
IGST:- 12,00,000/-
CGST :- 5,00,000/-
SGST :- 5,00,000/-
SALES:-
IGST :- 80,00,000/-
CGST :- 3,00,000/-
SGST :- 3,00,000/-
HOW TO SET OFF THIS LIABILITY?
WHETHER THERE WILL BE ANY PAYMENT OF CGST AND SGST IN THIS CASE?
if we have payables of the following
igst 15000 cgst 10000 sgst 10000
and we have itc of the followings
igst 10000 cgst 12000 and sgst 12000
then how can we set it off??
INPUT- IGST 10000/-CGST2000/-SGST-2000/-
OUTPUT- IGST-0/-CGST3000/- SGST3000/-
What is my liability in current month feb-2019
On GST Portal system is still calculated ITC Utilization as per old system. Whether we have to go with ITC Utilization as per system calculated or we have change manually as per new set off rule?
Input – IGST 70000/- CGST – Nil SGST – Nil
Output – IGST – Nil CGST- 35280 SGST – 35280/- Please calculate my liability under new law
SET OFF COMPUTATION
CGST SGST IGST
out put gst 510243 510243 91779
Less: ITC
IGST 365012 0 91779
SGST 0 254164 0
CGST 254164 0 0
-108963 254164 0
Here u pay tax the amount of RS 254264 SGST and in CGST case ITC will b 108963
NEW RULE 01/02/2019+
TEST
IGST CGST SGST TOTAL
ITC 456821 254164 254164 965149 ITC
LIABI. 91779 510243 510243 1112265 Liabilities
FIND GST SET OFF
IGST CGST SGST
ITC 456821 254164 254164
Set off IGST 91779
Balance 365042
CGST 365042 145201
Balance 0 108963
SGST 254164
PAID CASH SGST 256079 256079
IF Igst input Rs. 1000/- Cgst Input Rs. 1000/- & Sgst Input Rs. 1000/- And Output Tax Igst Rs. 1500/- Cgst Output Rs. 800/- & Sgst Output Rs. 800/- then how will adjust
1. IGST INPUT SET OFF WITH IGST LIABILITY
2.IF BALANCE INPUT AVAILABLE IN IGST THEN SET OFF WITH CGST OUT PUT
INPUT – IGST RS. 456821/-, CGST RS. 254164/- AND SGST RS. 254164/-
OUTPUT – IGST RS. 91779/-, CGST RS.510243/- AND SGST RS. 510243/-
PLEASE DO THE WORKING OF GST AS NEW LAW