GST Portal to implement the new ITC set off rule from 11th Jun 2019.

Background

CBIC has amended sec. 88A to alter the mechanism of ITC setoff. i.e. IGST credit has to be completely utilized before utilizing the CGST and SGST Credit. However the same was not implemented on the GST Portal due to some technical reasons.

Update

Now GSTN shall enable the utilization of ITC as per the newly inserted rule 88A of CGST Rules from 11th June 2019 which is likely to be used for payment of taxes of May 2019 GSTR 3B return.

So at the time of setoff of liability, the portal first utilize IGST ITC for payment of IGST liability. then IGST ITC for payment of SGST or CGST liability in any order. 

			Set off
Particular	Liab	Credit	IGST ITC	CGST ITC	SGST ITC
IGST	100	200	100
CGST	100	60	50	50
SGST	100	60	50		50

Carry forward SGST ITC 10 and CGST ITC 10.

Note: It IGST Credit could have been used as 60 against CGST and 40 against SGST as well.