Hello friends, in my previous post I discussed about late fees of Income Tax Returns for AY 2018-19.This time I am going to discuss about set off sequence in GST. Though this is very simple but still this small topic needs to be highlighted because of its importance in filing GST returns.

GSTNeedless to say but still I want to discuss right from the basic because I assume that this article may also be read by newcomers or students who are new to GST.

Whenever goods (services received or rendered) are purchased  or sold  within the state of origin of taxpayer i.e. intra-state  then CGST & SGST play their roles and if goods(services received or rendered)are purchased from outside the state or sold to other state i.e. inter-state then IGST plays its role.

So below is the table which shows the sequence of set off of GST credit.

Tax credit to be set off Available Input Tax Credit (In the order of utilization)
IGST IGST CGST SGST
CGST CGST IGST
SGST SGST IGST

It means, if we have IGST credit available with us then first of all we will have to set off IGST payable from this IGST credit and even after that If we have enough of IGST credit left then this IGST credit first will be used to set off CGST liability and if again we have some IGST credit left with us then set off SGST liability from it.

In case we have enough of CGST credit then first of all set off CGST liability from it and after that if we still have CGST credit with us then set off IGST liability from it.

In case we have enough of SGST credit then first of all set off SGST liability from it and after that if we still have SGST credit with us then set off IGST liability from it.

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Qualification: CA in Practice
Company: JItender Kanswal & Co
Location: Dehradun, Uttarakhand, IN
Member Since: 31 Jan 2018 | Total Posts: 6
A qualified Chartered Accountant having around 5 years of experience in accounts & finance field. Skilled in project analysis, variance analysis, project report preparation & financial reporting. View Full Profile

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2 responses to “Sequence to Set off Input tax credit in GST”

  1. poonam says:

    gst ledger in portal does not match with my books. in some month its less and in some its more. what should i do?

    • cajitender1986 says:

      Maam,
      ideally this should match bcos this is just a reflection of returns filed by you as per your books of account.
      Another reason may be that purchase made by you have some errors and having input credit differences.

      Ask more queries at: http://www.etaxlogic.com

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