Home      Free WhatsApp Updates      Services      Subscription Plans
🔒 Login    

Composition Scheme under GST

    

Treatment of Job Work in GST and Form ITC-04

    

Paver blocks laid down for parking of cars to avoid quicker wear & tear due to accumulation of water & dust amounts to construction of immovable property and not eligible for GST Input: Says AAR

    

Rule 36(4) - Buyer's ITC at the mercy of supplier?

    

High Court stayed interest, penalty and further investigation of other products of Whirlpool in response to writ filed by them.

    

Poultry Meal to attract 5% GST whereas Poultry Fat to attract 12% GST: Says AAR

    

GST on lease premium charges, annual lease rentals and maintenance charges paid on lease of land for own bulding construction is restricted and not eligible for ITC as per section 17(5)(d): Says AAR

    

Supply of food to Hospital on outsourcing basis to hospital patients shall be chargeable to 5% GST with no input w.e.f. 27.07.2018: Says AAR

    

GST Profiteering of Rs. 1,57,200 established in the case of supply of Duracell Battery AA/6 by respondent.

    

Revocation of GST Registration Applications

    
View all
Subscription Plans   
TaxReply.com - Free Tax updates for All
GST Library
Taxreply tweets
GST News
About GST Library
E-Books
Subscription Plans
Offers New
GST Rates Reckoner
Classification of Goods and Services
Classification of Goods and Services (Search)
Free Trial
GST Set-off Calculator
Full Site Search
GST Act / Rules
GST Act / Rules - Latest Amendments
GST Amendment Statistics
GST Notifications / Circulars Press Releases +
National Anti-Profiteering Authority
GST Case Laws (All)
↳ AAR Orders
↳ AAAR Orders
↳ NAA Orders
↳ High Court Orders
↳ Supreme Court Orders
GST Forms   
E-way Bill
↳ E-way Notifications
↳ E-way Bill News
↳ E-way Bill Rules
↳ E-way Bill FAQ
Finance Bill

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                      -     -                -  
 

 


Subscribe to Complete GST Library





Published by

TaxReply

on Feb 5, 2019

Comments


If you have made new ITC set off rules Calculator than Pl mail us very thankful to us
By: Nilesh Gajjar | Dt: Feb 6, 2019
IT IS APPLICABLE FOR JANUARY 2019 3B?
By: Parveen Jain | Dt: Feb 6, 2019

please mail us new ITC set off rules Calculator i will be very helpfull
By: Ashok Tiwari | Dt: Feb 7, 2019
This new ITC set off rules blocking working capital Please discuss
By: Aniruddha Chatterjee | Dt: Feb 11, 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!
By: Rahul | Dt: Feb 12, 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.
By: Vijay Mane | Dt: Feb 28, 2019
dear Nilesh GAjjar ji kindly provied Mail id
By: Dinkar | Dt: Mar 6, 2019
dear Nilesh GAjjar ji kindly provied Mail id
By: Dinkar | Dt: Mar 6, 2019
Thank you for presenting the old GST set off rules and new GST set off rules in an easily understandable manner along with different examples for both.
By: Rajesh Patwardhan | Dt: Jul 20, 2020


Post your comment here !


6226