Adjusting IGST liability equally with cgst and sgst

[Yash Jain]

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.

AI Summary

Input tax credit utilisation order: CGST credit must be exhausted before SGST for payment of IGST, subject to guidance.
Allocation of input tax credit for payment of integrated tax is governed by a statutory priority requiring exhaustion of central tax credit before utilisation of State or Union territory tax credit; equal apportionment of CGST and SGST against an IGST liability is therefore not consistent with that priority, though administrative circulars and portal functionality have affected short-term practice and implementation of a new rule may alter operational treatment.