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

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

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

  1. I have liability of IGST-0, CGST-4977,SGST-4977 and ITC of IGST-14400, CGST-34234, SGST-141979 when i am trying to offset my laibility as per new provision shows me this error message – offset the CGST credit against the CGST liability first before cross-utilization.If error persists quote error number LG9069 when you contact customer care for quick resolution.

    • Dear Members, GST portal is unable to apply GST calculation as per new section (49A).

      We have discussed this matter with GST support but they have not given any assurance about new GST set off rules as per section 49A.

      So, we advise you that File and calculate GST as per old rule. If there is any update by GST portal, we will update you accordingly.

      Check New GST Rules (Sec 49A) Here: https://bit.ly/2TMcdgm

      Thanks

  2. 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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