Regarding IGST credit

[Jasbir Uppal]

Dear professionals,

The IGST paid on import of goods from out of Indian Territory which is out credit should be showing in cash balance on GSTN portal but it is not shown and the taxpayer is unable to adjust the liability of RCM. In GSTR-3B there is no mechanism for adjustment IGST with liability of RCM.

Professionals brother and sister please give the valuable views.

With regards

J.S. Uppal

Tax Professional

[Himansu Sekhar]

No, it is just like any credit if you upload the particulars in gstr2. It will not be shown in the cash balance.

[Himansu Sekhar]

RCM has to be paid by cash only.

[KASTURI SETHI]

Rightly advised by Sh.Himansu Ji. If querist requires more details or further clarification, he may elaborate specifically otherwise Sh.Himansu' s is perfect.

[DR.MARIAPPAN GOVINDARAJAN]

If you pay the tax the same will be reflected in electronic cash ledger. If not reflected you may approach the GST network.

[Jasbir Uppal]

All imports will be deemed as inter-State supplies for the purposes of levy of GST. IGST is livable on imports in addition to other duties of customs. Full set-off will be available as ITC of the IGST paid on import on goods and services

Cash Ledger, will reflect all deposits made in cash, TDS/TCS made on account of tax payer. Money can be deposited in this ledger by Internet banking, debit card, credit card, RTGS, NEFT, over the counter payments of authorized banks. (The credit card needs to be registered on the portal) Payments can be debited from this ledger the debit entry no. is to be reflected in the return. This information will be reflected on real time basis.

Then can the taxpayer meat out the tax liability under RCM with this amount.

[Himansu Sekhar]

RCM can be paid from casdh ledger.

It has no relationship with imports igst.

[KASTURI SETHI]

Under RCM deposit of tax in cash makes you eligible for taking ITC. Thus such cash deposit lying in your electronic ledger has independent existence. No bottleneck in using ITC as already explained above. Also read Section 49(5) of the CGST Act.

[Jasbir Uppal]

Thanks a lots to all Professionals brother for given valuable views

with regards

J.S. Uppal

[Chhatra Jain]

Dear Mr Uppal

I think you under impression that whatever you pay as IGST on import will be available to you for discharging any type of your GST liability.

No it is not so. U/s 49(5) oo CGST Act whatever you pay as IGST is credited in your electronic credit ledger. There are two types of ledgers in GST portal. One is electronic Cash ledger and other is electronic Credit ledger. So RCM liability/ late payment fee, interest etc are required to be paid from cash ledger not from credit ledger.

So now it is clear that whatever your input tax balance in your credit ledger would be available to you for set off against against your output tax.

Whatever other RCM etc liabilities are required to be paid from cash ledger. So there should be balance available in your cash ledger.

I think matter is clear now

[KASTURI SETHI]

Jain Sahib,. Thanks a lot for making all the replies crystal clear on the issue. I think now the Querist must be satisfied as not even an iota of doubt is left.

[Chhatra Jain]

Kasturi sir,

Thanks a lot......

AI Summary

Tax Pros Clarify: IGST on Imports Can't Offset RCM in GSTR-3B; Must Use Cash Ledger for RCM Payments. A tax professional raised a query about the inability to adjust IGST paid on imports against the liability of Reverse Charge Mechanism (RCM) in the GSTR-3B form. Several professionals responded, clarifying that IGST paid on imports is credited to the electronic credit ledger and cannot be used to settle RCM liabilities, which must be paid from the cash ledger. They emphasized the distinction between the electronic cash ledger and credit ledger on the GST portal. The discussion concluded with the confirmation that the matter was clarified, with no remaining doubts.