FOLLOWING ARE THE RULES AND TIPS WHICH WILL BE VERY HANDY FOR OFFSET LIABILITY IN GSTR-3B
As the everyone knows that GST has three main Tax Head (IGST, SGST OR CGST).
- IGST stands for Integrated Goods and Service Tax.
- CGST stands for Central Goods and Service Tax.
- SGST stands for State Goods and Service Tax.
IGST is come into use when the Goods and Services paid or move to one state to another state is called Interstate Sale/Purchase.
CGST and SGST is come into use when the Goods and Service paid or move in the State is Called Intrastate Sale/Purchase.
The above said points are important to know for Payment Offset Liability in GSTR-3B.
Important Rules:-
1.) If the any firm have ITC in IGST head and he wants to utilized this ITC against the output Liabilities. So, first he utilized the ITC with IGST HEAD, second with CGST and third with SGST.
For First Example; let us suppose the A FIRM purchase goods from another state (Purchase Interstate) of amount RS. 50000.00 at IGST TAX RATE 18%. and than sale some goods to another state (Sale Interstate) of amount Rs. 10000.00/- at 18% IGST TAX RATE. and Sale some goods in State (Sale Intrastate) of amount 15000.00/- at 9% CGST TAX RATE + 9% SGST TAX RATE.
Purchase of goods from Interstate (another State) = 50000.00/-
IGST Tax input @ 18% = 9000.00/-
Sale of goods to Interstate (another State) = 10000.00/-
IGST Tax Output @ 18% = 1800.00/-
Sale of goods to Intrastate (in state) = 15000.00/-
CGST Tax Output @ 9% = 1350.00/-
SGST Tax Output @ 9% = 1350.00/-
As per GST LAW.
FIRST IGST ITC IS UTILIZED WITH IGST OUTPUT TAX.
IGST TAX INPUT @ 18 % = 9000.00/-
LESS IGST OUTPUT @ 18% = -1800.00/-
S. TOTAL (BAL. IGST ITC) = 7200.00/-
SECOND THE BALANCE IGST ITC IS UTILIZED WITH CGST OUTPUT TAX.
IGST TAX INPUT @ 18 % = 7200.00/-
LESS CGST OUTPUT @ 9% = -1350.00/-
S. TOTAL (BAL. IGST ITC) = 5850.00/-
THIRD THE BALANCE IGST ITC IS UTILIZED WITH SGST OUTPUT TAX.
IGST TAX INPUT @ 18 % = 5850.00/-
LESS SGST OUTPUT @ 9% = -1350.00/-
S. TOTAL (BAL. IGST ITC) = 4500.00/-
Off Set Liability Table Format:
IGST (ITC =9000.00/-) CGST SGST
IGST 1800.00
(O/P =1800.00/-)
CGST 1350.00
(O/P= 1350.00/-)
SGST 1350.00
(O/P= 1350.00/-)
For Second Example; let us suppose the A FIRM purchase goods from another state (Purchase Interstate) of amount RS. 9000.00 at IGST TAX RATE 18%. and than Sale some goods in State (Sale Intrastate) of amount 10000.00/- at 9% CGST TAX RATE + 9% SGST TAX RATE.
Purchase of goods from Interstate (another State) = 9000.00/-IGST Tax input @ 18% = 1620.00/-
Sale of goods to Intrastate (in state) = 10000.00/-
CGST Tax Output @ 9% = 900.00/-
SGST Tax Output @ 9% = 900.00/-
As per GST LAW.
FIRST IGST ITC IS UTILIZED WITH IGST OUTPUT TAX.
IGST TAX INPUT @ 18 % = 1620.00/-
LESS IGST OUTPUT @ 18% = -0.00/-
S. TOTAL (BAL. IGST ITC) = 1620.00/-
SECOND THE BALANCE IGST ITC IS UTILIZED WITH CGST OUTPUT TAX.
IGST TAX INPUT @ 18 % = 1620.00/-
LESS CGST OUTPUT @ 9% = -900.00/-
S. TOTAL (BAL. IGST ITC) = 720.00/-
THIRD THE BALANCE IGST ITC IS UTILIZED WITH SGST OUTPUT TAX.
IGST TAX INPUT @ 18 % = 720.00/-
LESS SGST OUTPUT @ 9% = -900.00/-
S. TOTAL (BAL. IGST ITC) = -180.00/-
Kindly note the negative sign shows that the IGST ITC is short of Rs. 180.00/-. it means the firm has to pay 180/- TAX in SGST head.
IGST (ITC =1620.00/-) CGST SGST CASH
IGST 0.00 0 0 0
(O/P =0.00/-)
CGST 900.00 0 0 0
(O/P= 900.00/-)
SGST 720.00 0 0 180.00
(O/P= 900.00/-)
