Credit mechanism under GST seems to be a complex.
Here we will explain how the credit will be utilized on GST EXPLAINED.
For UTGST Liability:
For CGST Liability:
For SGST Liability:
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Here we will explain how the credit will be utilized on GST EXPLAINED.
- Input credit of CGST, SGST, IGST, UTGST would be available to the taxpayer for set off from his output liability.
- Utilization of one state SGST and UTGST in setting of another state SGST and UTGST would not be allowed.
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- The input would be first required to be setoff against its own output liability and then to further liabilities. Eg. Output CGST should be first setoff from Input CGST ( of same state ) and then IGST.
The utilization can be very well be explained through the following diagrams.
Please note that Input should be utilized as given in order (left to right):
For IGST Liability:
For SGST Liability:
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GST Credit Mechanism : How Different GST Credit will be Setoff
Reviewed by Author
on
May 30, 2017
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Reviewed by Author
on
May 30, 2017
Rating:
