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Latest amendments in GST enacted on 07.03.2019

    

Recommendations of the 33rd GST Council meeting held on 24.02.2019

    

GSTR-3B due date for January 2019 has been extended upto 22.02.2019

    

New GST Input-Output Set off Rules w.e.f. 01.02.2019

    

Cabinet approves creation of the National Bench of the Goods and Services Tax Appellate Tribunal (GSTAT)

    

Delhi High Court stays demand in the case of Hindustan Unilever (HUL) for Profiteering imposed by NAA

    

Major decisions taken in 32nd GST Council Meeting

    

Bank account details are not required for GST Registration now

    

Standard Operating Procedure on TDS updated as on 27.12.2018 issued by CBIC

    

Guidelines and procedure of applications for financial assistance under the Central Scheme named Seva Bhoj Yojna for reimbursement of central tax and Central Government share of integrated tax paid on the purchase of raw food items.

    

31st GST Council Meeting held on 22 December 2018 - Rate changes and clarification in Goods

    

31st GST Council Meeting held on 22 December 2018 - GST rate on services

    

31st GST Council Meeting held on 22 December 2018 - Certain important issues referred by GST Council to various Committees / GoM

    

31st GST Council Meeting held on 22 December 2018 - In-Principle approval given for Law Amendments

    

31st GST Council Meeting held on 22 December 2018 - Formation of Group of Minister as Recommended by the GST Council

    

31st GST Council Meeting held on 22 December 2018 - Recommendations in Return Filing and Procedural Changes

    

31st GST Council Meeting held on 22 December 2018 - Recommendations in GST Rate Changes

    

Directorate General of GST Intelligence arrested the promoters of two Mumbai-based textile firms

    

Prime Minister promises relief in GST on many products from 28% to 18%

    

Development of new return filing system and sharing of data by GSTN with tax authorities

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Government has changed the GST Set off Rules by inserting section 49A in CGST Act w.e.f. 01.02.2019. Now IGST Credit is required to be set off fully before taking any set off from CGST/SGST credit. Which means earlier CGST/SGST credit was first used to be set-off with CGST/SGST liability respectively and thereafter only, IGST credit was used against CGST/SGST liability. But now IGST Credit has to be first utilised against IGST/CGST/SGST liability, even before utilisation of CGST/SGST credit.


Old GST Set off Rules up to 01/02/2019

OUTPUT

INPUT

SET-OFF ORDER

IGST

IGST -> CGST -> SGST

CGST

CGST -> IGST

SGST

SGST -> IGST

 

New GST Set off Rules w.e.f. 01/02/2019

OUTPUT

INPUT

SET-OFF ORDER

IGST

IGST -> CGST -> SGST

CGST

IGST ->CGST

SGST

IGST -> SGST


The bare version of section 49A is as below.

"49A. Notwithstanding anything contained in section 49, the input tax credit on account of central tax, State tax or Union territory tax shall be utilised towards payment of integrated tax, central tax, State tax or Union territory tax, as the case may be, only after the input tax credit available on account of integrated tax has first been utilised fully towards such payment."

 

Example 1

   IGST   CGST   SGST 
OUTPUT           1,000.00             1,000.00             1,000.00
INPUT           2,800.00                400.00                400.00

 

Set Off as per Old Rules

AS PER OLD RULES
OUTPUT LIABILITY  OUTPUT   INPUT SET-OFF   BALANCE 
 IGST   CGST   SGST 
IGST           1,000.00             1,000.00                      -                    -                  -  
CGST           1,000.00                600.00                400.00                  -  
SGST           1,000.00                600.00             400.00                -  
TOTAL           3,000.00             2,200.00                400.00           400.00                -  

 

Set Off as per New Rules

AS PER NEW RULES
OUTPUT LIABILITY  OUTPUT   INPUT SET-OFF   BALANCE 
 IGST   CGST   SGST 
IGST           1,000.00             1,000.00                      -                    -                  -  
CGST           1,000.00             1,000.00                      -                    -  
SGST           1,000.00                800.00             200.00                -  
TOTAL           3,000.00             2,800.00                      -             200.00                -  

 

Example 2

   IGST   CGST   SGST 
OUTPUT           1,000.00             1,000.00             1,000.00
INPUT           1,800.00                400.00                400.00

 

Set Off as per Old Rules

AS PER OLD RULES
OUTPUT LIABILITY  OUTPUT   INPUT SET-OFF   BALANCE TO BE PAID IN CASH
 IGST   CGST   SGST 
IGST           1,000.00             1,000.00                      -                    -                  -  
CGST           1,000.00                600.00                400.00                  -  
SGST           1,000.00                200.00             400.00                400.00  
TOTAL           3,000.00             1,800.00                400.00           400.00                -  

 

Set Off as per New Rules

AS PER NEW RULES
OUTPUT LIABILITY  OUTPUT   INPUT SET-OFF   BALANCE TO BE PAID IN CASH 
 IGST   CGST   SGST 
IGST           1,000.00             1,000.00                      -                    -                  -  
CGST           1,000.00             800.00                      200.00   -                -  
SGST           1,000.00        -     -           400.00     600.00
TOTAL           3,000.00             1,800.00                      200.00             400.00                -  
 

 

Example 3

   IGST   CGST   SGST 
OUTPUT           1,000.00             1,000.00             1,000.00
INPUT           3,800.00                400.00                400.00

 

Set Off as per Old Rules

AS PER OLD RULES
OUTPUT LIABILITY  OUTPUT   INPUT SET-OFF   BALANCE 
 IGST   CGST   SGST 
IGST           1,000.00             1,000.00                      -                    -                  -  
CGST           1,000.00                600.00                400.00                  -  
SGST           1,000.00                600.00             400.00                -  
TOTAL           3,000.00             2,200.00                400.00           400.00                -  

 

Set Off as per New Rules

AS PER NEW RULES
OUTPUT LIABILITY  OUTPUT   INPUT SET-OFF   BALANCE 
 IGST   CGST   SGST 
IGST           1,000.00      1,000.00                      -                    -                  -  
CGST           1,000.00     1,000.00                      -   -                -  
SGST           1,000.00     1,000.00 - -                -  
TOTAL           3,000.00     3,000.00                      -     -                -  
 

 



ID: 486 | Date 05-02-2019 | Posted By:

CA Mohit Jain

Comments


If you have made new ITC set off rules Calculator than Pl mail us very thankful to us

Comment By: Nilesh GAjjar | Date: 06-02-2019
IT IS APPLICABLE FOR JANUARY 2019 3B?

Comment By: PARVEEN JAIN | Date: 06-02-2019

please mail us new ITC set off rules Calculator i will be very helpfull

Comment By: ashok tiwari | Date: 07-02-2019
This new ITC set off rules blocking working capital Please discuss

Comment By: ANIRUDDHA CHATTERJEE | Date: 11-02-2019
If output tax of igst is greater than its itc whether we need to set off the cgst and sgst using its own credit or to set off igst first? what to do? Help!

Comment By: Rahul | Date: 12-02-2019
Sir, your previous ITC Set off working sheet is very helpful up to 31.01.2019. W.e.f. 01.02.19 we have to follow new rule of ITC Set off. Please share new auto calculator.

Comment By: Vijay Mane | Date: 28-02-2019
dear Nilesh GAjjar ji kindly provied Mail id

Comment By: dinkar | Date: 06-03-2019
dear Nilesh GAjjar ji kindly provied Mail id

Comment By: dinkar | Date: 06-03-2019


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