Question ID :
40499
Adjustment of Unutilised SGST for paying IGST
A person is having CGST as well as SGST Balance in Credit Ledger. He wants to adjust IGST liability from SGST as IGST balance is already utilised without using CGST Balance. Is it possible ? If yes then System is not allowing it
Posted by
Mahesh Kumar
on
Dec 07, 2019
Filed Under
GST
After Utilising IGST Balance, you have fully utilized CGST balance firstly, after that SGST balance can be utilized.
Posted by
JYOTI BALUNI on
Dec 07, 2019
Answer ID :
80290
Please refer proviso to Section 49(5)(c) of CGST Act'2017. Wherein it clarifies that only after utilizing the balance in CGST account is allowed to utilize the SGST credit for payment of IGST liability.
Posted by
CA. NAGABHUSHAN J on
Dec 10, 2019
Answer ID :
80293
No it is not possible.
Proviso to Section 49(5)(c) (w.e.f. 01-02-2019) restrict adjustment of SGST before exhausting CGST.
so you need to first pay IGST Liability by utilizing CGST ITC, IGST liability remaining after that can be paid by SGST ITC.
Posted by
Manish Kumar Sharma on
Dec 12, 2019
Answer ID :
80321
First CGST is to be utilised.
Posted by
VINAY BHARGAV KUMAR G on
Dec 31, 2019