Cash balance to be utilised in GSTR-3B

[Pradeep Singhi]

I have two business verticals in single registration. To avoid inter utilisation of credits whether Cash ledger balance can be utilised in GSTR-3B even though if there is input tax credit on portal ?

AI Summary

GSTR-3B: Can Cash Ledger Balance Be Used First to Avoid Credit Offset in Single GST Registration? A user inquired about utilizing the cash ledger balance in GSTR-3B to avoid inter-utilization of credits across two business verticals within a single GST registration. Respondents explained that the system typically offsets credit before cash. One noted that while legally taxes can be paid in cash despite available input tax credit, the government prefers cash payments for revenue recognition. Another shared that cash ledger balance can be used first, especially for those receiving TDS credits or claiming GST refunds. However, it was mentioned that the portal usually auto-offsets using credit before cash.