Suppose their is only IGST liability of 5 lakhs
And cgst-sgst inputs of 4lakh + 4lakh.
Is it possible to set off the IGST liability equally 2.5lakhs each from cgst-sgst.
So that the remaining input is 1.5lakh each.
The auto calculation shows complete utilisation of 4lakh cgst first and then 1lakh sgst. Due to this 3 lakh sgst is accumulated due to which nexr month's sale, we are sometimes need to pay cgst challan.
Debate on Adjusting IGST Liability with CGST/SGST Credits: Section 49A Mandates IGST Credit Use First A forum discussion addressed the issue of adjusting IGST liability with CGST and SGST credits. The initial query proposed setting off IGST liability equally from CGST and SGST inputs. Responses varied, with one participant citing Section 49A of the CGST Act, 2017, which mandates utilizing IGST credit first before CGST or SGST. Others pointed out amendments and circulars that influence credit utilization. The consensus leaned towards following the amended provisions, which require exhausting CGST credit before using SGST for IGST payments, although some noted discrepancies with the GSTN portal's auto-calculation. The debate highlighted ongoing changes and interpretations in GST regulations. (AI Summary)
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