New GST Input Output Set off Rules w.e.f. 1-2-2019

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Central Board of Indirect Taxes & Customs has changed the GST Set off Rules by inserting section 49A in CGST Act w.e.f. 01.02.2019.

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.”

Old GST Set off Rule

Tax Credit to be Set OffOrder to utilisation
IGST OutputIGST Input -> CGST Input -> SGST Input
CGST OutputCGST Input -> IGST Input
SGST OutputSGST Input -> IGST Input

New GST Set Off Rules w.e.f. 1st Feb 2019

Tax Credit to be Set OffOrder to utilisation
IGST OutputIGST Input -> CGST Input -> SGST Input
CGST OutputIGST Input -> CGST Input (Changed w.e.f. 1-2-2019)
SGST OutputIGST Input -> SGST Input (Changed w.e.f. 1-2-2019)

Check GST Set Off Calculator w.e.f 1-2-2019

Categories GST

2 thoughts on “New GST Input Output Set off Rules w.e.f. 1-2-2019”

  1. Is this new rule applicable for GST Liability for the month of January 2019 which is actually payable in February 2019.

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