GST SET OFF RULES

GST Set Off Rules: GST set off rules tell us that how to utilise input tax credit for payment of output IGST, output CGST and output SGST

Old GST Set Off Rules- up to 01.02.2019

The following sequences were required to be maintained up to 01.02.2019

IGST LIABILITY CGST LIABILITY SGST LIABILITY
IGST CREDIT CGST CREDIT SGST CREDIT
CGST OR SGST CREDIT IGST CREDIT IGST CREDIT

 

As per new amended CGST Law: w.e.f 01.02.2019: As per new GST Set off Rules,  IGST Input Tax Credit should be first utilised for payment of IGST Output Tax liability, then remaining IGST ITC can be used for either CGST or SGST/UTGST in any order or any proportionate amount.

There are following sequences which need to be maintained-

IGST LIABILITY IGST LIABILITY IGST LIABILITY
IGST CREDIT IGST CREDIT IGST CREDIT
CGST CREDIT CGST CREDIT SGST CREDIT
SGST CREDIT

 

 

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