Offset IGST Liability with CGST credit before utilizing sgst/utgst credit

[Gourav Ravi Garg]

Dear experts, i am facing a problem in cross utilisation of ITC. The scenario is that tax payable under IGST, CGST & SGST is 5,15,361, 2,19,180 & 2,19,180 respectively. Now while adjusting IGST, the portal allows adjustments first through IGST, then CGST, and in the last from the SGST after exhausting CGST. This issue leads to the accumulation of ITC in SGST.

As far as I remember, there was a notification in the January 2026. I waws able to adjust it according to my favour in the month of Feb, but after that, it is back to the old scenario.

Please advise.

AI Summary

Input tax credit utilisation under GST follows Rule 88A, and portal validation cannot override statutory credit ordering.
Cross-utilisation of input tax credit for IGST liability is governed by Sections 49, 49A and 49B of the CGST Act read with Rule 88A of the CGST Rules, which permits utilisation of IGST credit first and thereafter CGST and SGST/UTGST credit in any order and in any proportion after exhaustion of IGST credit. A portal validation sequence that requires CGST credit to be exhausted before SGST credit is used is treated as a system issue and not as a substantive legal restriction. Statutory provisions prevail over portal architecture, and advisories or FAQs cannot override the law.