{"id":407,"date":"2020-08-11T05:43:19","date_gmt":"2020-08-11T05:43:19","guid":{"rendered":"https:\/\/www.govreports.co.in\/blog\/?p=407"},"modified":"2020-08-11T05:44:00","modified_gmt":"2020-08-11T05:44:00","slug":"offset-rules-and-itc-utilization","status":"publish","type":"post","link":"https:\/\/www.govreports.co.in\/blog\/2020\/08\/11\/offset-rules-and-itc-utilization\/","title":{"rendered":"Offset Rules and ITC Utilization"},"content":{"rendered":"\n<p>The government has announced GST in India on July 01, 2017.\nThis is an Indirect Tax system and it is the centralised tax in one umbrella.<\/p>\n\n\n\n<!--more Continue Reading-->\n\n\n\n<p>Basically GST is&nbsp;\nmandatory for the businesses with annual turnover of Rs.40 lakhs and\nabove in a financial year and those businesses with annual turnover below Rs.40\nlakhs have been voluntarily registered for GST.<\/p>\n\n\n\n<p>Offset is one of main process in GST filing which is\nincluded in the form GSTR-3B.<\/p>\n\n\n\n<p>The payment option is available only in GSTR-3B.<\/p>\n\n\n\n<p>GSTR-3B is called consolidated summary of Sales and\nPurchase.<\/p>\n\n\n\n<p>GSTR-3B has the following steps:&nbsp; <\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Form section<\/li><li>Save<\/li><li>Create Challan <\/li><li>Offset process <\/li><li>Submit <\/li><li>File<\/li><\/ul>\n\n\n\n<p>Now, let us see the Offset process. This includes payment and\nledger offset.<\/p>\n\n\n\n<p>After saving the return, navigate to Offset page for closing\n&nbsp;the current month\u00e2\u20ac\u2122s sales and purchase.<\/p>\n\n\n\n<p>Offset Options are as mentioned below:<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img loading=\"lazy\" decoding=\"async\" width=\"673\" height=\"456\" src=\"https:\/\/www.govreports.co.in\/blog\/wp-content\/uploads\/2020\/08\/GST_Set_Off-1.png\" alt=\"\" class=\"wp-image-396\" srcset=\"https:\/\/www.govreports.co.in\/blog\/wp-content\/uploads\/2020\/08\/GST_Set_Off-1.png 673w, https:\/\/www.govreports.co.in\/blog\/wp-content\/uploads\/2020\/08\/GST_Set_Off-1-300x203.png 300w\" sizes=\"auto, (max-width: 673px) 100vw, 673px\" \/><\/figure>\n\n\n\n<p>Taxpayers should first use the ITC available from IGST to\npay in the tax payable in IGST. The ITC balance after this can then be used\ntowards paying CGST, SGST. <\/p>\n\n\n\n<p>These are the steps followed in CGST and SGST.<\/p>\n\n\n\n<p>For example, Sakthi Engineers has an IGST credit of\nRs.50,000 (Rs.15,000 + Rs.15,000 + Rs. 20,000), and tax liabilities of IGST\n20,000, CGST 10,000 and SGST 15,000.<\/p>\n\n\n\n<p>According to the tax offsetting rules under GST, IGST credit\nneeds to be used first to offset IGST tax liability. <\/p>\n\n\n\n<p>The IGST credit left out can be used against CGST liability,\nafter which it against SGST liability.<\/p>\n\n\n\n<p>So, offset rules is applied automatically in the GST Portal\nbut it is always good to know about ITC utilization for accounting purpose and\nto gain GST knowledge.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The government has announced GST in India on July 01, 2017. This is an Indirect Tax system and it is the centralised tax in one umbrella.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-407","post","type-post","status-publish","format-standard","hentry","category-uncategorised"],"_links":{"self":[{"href":"https:\/\/www.govreports.co.in\/blog\/wp-json\/wp\/v2\/posts\/407","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.govreports.co.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.govreports.co.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.govreports.co.in\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.govreports.co.in\/blog\/wp-json\/wp\/v2\/comments?post=407"}],"version-history":[{"count":4,"href":"https:\/\/www.govreports.co.in\/blog\/wp-json\/wp\/v2\/posts\/407\/revisions"}],"predecessor-version":[{"id":411,"href":"https:\/\/www.govreports.co.in\/blog\/wp-json\/wp\/v2\/posts\/407\/revisions\/411"}],"wp:attachment":[{"href":"https:\/\/www.govreports.co.in\/blog\/wp-json\/wp\/v2\/media?parent=407"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.govreports.co.in\/blog\/wp-json\/wp\/v2\/categories?post=407"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.govreports.co.in\/blog\/wp-json\/wp\/v2\/tags?post=407"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}