Big Change in GST Payment/Set-off new rules from 1st February 2019
GST INPUT TAX CREDIT
Take into consideration the new sections inserted after section 49 of the CGST act.
"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"
"49B. Notwithstanding anything contained in this chapter and subject to the provisions of clause (e) and clause (f) of sub-section (5) of section 49, the Government may, on the recommendations of the council, prescribe the order and manner of utilisation of the input tax credit on account of Integrated tax, Central tax, State tax or Union territory tax , as the case may be, towards payment of any such tax".
Old rules for utilization of GST input tax credit (Till 31st January 2019) :-
* IGST OUTPUT - IGST INPUT - CGST INPUT - SGST INPUT
* CGST OUTPUT - CGST INPUT - IGST INPUT
* SGST OUTPUT - SGST INPUT - IGST INPUT
New rules for utilization of GST input tax credit (From 1st February 2019) :-
GST OUTPUT - FIRST SET OFF FROM - THEN SET OFF FROM
* IGST OUTPUT - IGST INPUT -CGST INPUT-SGST INPUT ( No change )
* CGST OUTPUT - IGST INPUT - CGST INPUT
* SGST OUTPUT - IGST INPUT - SGST INPUT
EXAMPLE:-1
Old rules for utilization of input tax credit GST adjustment
* IGST OUTPUT - IGST INPUT - CGST INPUT - SGST INPUT- IGST PAYABLE
45,000.00 45,000.00 0.00 0.00 0.00
* CGST OUTPUT - CGST INPUT - IGST INPUT CGST PAYABLE
75,000.00 52,000.00 23,000.00 0.00
* SGST OUTPUT - SGST INPUT - IGST INPUT SGST PAYABLE
75,000.00 52,000.00 23,000.00 0.00
New rules for utilization of input tax credit GST adjustment
* IGST OUTPUT - IGST INPUT - CGST INPUT - SGST INPUT - IGST PAYABLE
45,000.00 45,000.00 0.00 0.00
* CGST OUTPUT - IGST INPUT - CGST INPUT CGST PAYABLE
75,000.00 52,000.00 23,000.00 0.00
* SGST OUTPUT - IGST INPUT - SGST INPUT SGST PAYABLE
45,000.00 45,000.00 0.00 0.00
* CGST OUTPUT - IGST INPUT - CGST INPUT CGST PAYABLE
75,000.00 52,000.00 23,000.00 0.00
* SGST OUTPUT - IGST INPUT - SGST INPUT SGST PAYABLE
75,000.00 0.00 52,000.00 23,000.00
EXAMPLE:-2
 |
Old rules for utilization of input tax credit GST adjustment
* IGST OUTPUT - IGST INPUT - CGST INPUT - SGST INPUT- IGST PAYABLE
45,000.00 45,000.00 0.00 0.00 0.00
* CGST OUTPUT - CGST INPUT - IGST INPUT CGST PAYABLE
75,000.00 48,000.00 15,000.00 12,000.00
* SGST OUTPUT - SGST INPUT - IGST INPUT SGST PAYABLE
75,000.00 48,000.00 0.00 27,000.00
New rules for utilization of input tax credit GST adjustment
* IGST OUTPUT - IGST INPUT - CGST INPUT - SGST INPUT - IGST PAYABLE
45,000.00 45,000.00 0.00 0.00
* CGST OUTPUT - IGST INPUT - CGST INPUT CGST PAYABLE
75,000.00 15,000.00 48,000.00 12,000.00
* SGST OUTPUT - IGST INPUT - SGST INPUT SGST PAYABLE
75,000.00 0.00 48,000.00 27,000.00
EXAMPLE:-3
Old rules for utilization of input tax credit GST adjustment
* IGST OUTPUT - IGST INPUT - CGST INPUT - SGST INPUT- IGST PAYABLE
21,200.00 21,200.00 0.00 0.00 0.00
* CGST OUTPUT - CGST INPUT - IGST INPUT CGST PAYABLE
61,000.00 37,500.00 23,500.00 0.00
* SGST OUTPUT - SGST INPUT - IGST INPUT SGST PAYABLE
61,000.00 37,500.00 23,500.00 0.00
New rules for utilization of input tax credit GST adjustment
* IGST OUTPUT - IGST INPUT - CGST INPUT - SGST INPUT - IGST PAYABLE
21,200.00 21,200.00 0.00 0.00
* CGST OUTPUT - IGST INPUT - CGST INPUT CGST PAYABLE
61,000.00 61,000.00 0.00 0.00
* SGST OUTPUT - IGST INPUT - SGST INPUT SGST PAYABLE
61,000.00 10,000.00 37,500.00 13,500.00
