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.
Needless 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.
how to set of gst tax entries.
gst ledger in portal does not match with my books. in some month its less and in some its more. what should i do?