Basics of GST and Input Tax adjustment in GST

this course cover details discussion of adjustment of input CGST, SGST and IGST against of Output CGST, SGST and IGST

As per old rules, following was the priority of set-off of ITC was as below:

• For CGST Output – First set off thru ITC of CGST, then IGST

• For SGST Output – First set off thru ITC of SGST, then IGST

• For IGST Output – First set off thru ITC of IGST, then CGST & then SGST

As per CGST (Amendment) Act 2018, the priority of set-off of ITC is as below:

• For CGST Output- First set off thru ITC of IGST, then CGST

• For SGST Output – First set off thru ITC of IGST, then SGST

• For IGST Output – First set off thru ITC of IGST, then CGST & then SGST

Following new sections have been inserted thru CGST (Amendment) Act 2018:

As per Section 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.

As per Section 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 utilization 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.