Adjustments of gst

[THYAGARAJAN KALYANASUNDARAM]

Dear expert,

I have a doubt regarding adjustment of taxes.

Suppose if I travel to other states (Delhi) and stays in hotel, as per the GST they will charge only sgst and cgst since where the immovable property is located. In this scenario, Can I take the credit and adjust sgst and cgst in my gst return(tamilnadu) . If not which section says?

Thanks in advance.

[Himansu Sekhar]

No, sgst,cgst of other states will not be allowed for taking credit. Sgst of one state cannot be allowed t be used for payment of sgst of another state, section 49 of the sgst act,2017. Such credit can be distributed through isd.

[Himansu Sekhar]

Experts may give their views.

AI Summary

Cross-state SGST credit prohibition: SGST/CGST charged in another state cannot be claimed; use ISD distribution instead. Input tax credit for SGST and CGST charged in the State where the immovable property is located cannot be claimed or used to discharge SGST liabilities in another State; SGST of one State cannot be applied against SGST of another State. The respondent invokes section 49 of the SGST Act, 2017, and indicates that such credits, if distributable, should be routed through an ISD rather than used directly across State SGST accounts.