Section 49 – cgst, sgst/utgst, igst input tax credit mechanism
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Section- 49 – CGST, SGST/UTGST, IGST Input Tax Credit Mechanism And E-Ledgers in GST 1. NORMAL CREDIT MECHANISM 2. REVERSE CHARGE CREDIT MECHANISM SOME OTHER SMALL POINTS 3. E-LEDGER in GST
Section 49 – cgst, sgst/utgst, igst input tax credit mechanism
- 1. Chakraborty Kapoor & Co. LLP Cost & Management Accountants Goods and Service Tax Section- 49 – CGST, SGST/UTGST, IGST Input Tax Credit Mechanism And E-Ledgers in GST CMA C.P. Kalra CMAArunava Chakraborty CMA Md. Rehan Cost & Management Accountants Email: info@cmackc.com Contact No. 011-26275907
- 2. 1. NORMAL CREDIT MECHANISM Chakraborty Kapoor & Co. LLP © 2. REVERSE CHARGE CREDIT MECHANISM SOME OTHER SMALL POINTS 3. E-LEDGER in GST INPUT TAX CREDIT
- 3. Credit Mechanism Input CGST 1st Priority: Output CGST Liability 2nd Priority: Output IGST Liability Input SGST/UTGST 1st Priority: Output SGST/UTGST Liability 2nd Priority: Output IGST Liability Input IGST 1st Priority: Output IGST Liability 2nd Priority: Output CGST Liability 3rd Priority: Output SGST/UTGST Liability SGST/UTGST cannot be setoff against CGST Chakraborty Kapoor & Co. LLP ©
- 4. All input tax credit of CGST, SGST/UTGST and IGST will be credited into E-Credit Ledger Such input tax credit of CGST, SGST/UTGST and IGST will be utilized to set-off output tax liability If there is any balance left in E-liability ledger even after setting off input tax credit with output tax liability, then it will be paid from E-Cash Ledger. Credit Mechanism
- 5. Note: - To pay from E-Cash Ledger, at first we have to load money into E-Cash Ledger by using internet banking or NEFT/RTGS or by depositing cash into scheduled bank through challan Note:- If there is tax liability under reverse charge then it must be paid through E-Cash Ledger every month and it cannot be discharged/setoff by using input tax credit. However it can be claimed in next month as input credit. Credit Mechanism
- 6. Any amount payable under reverse charge shall be paid by debiting the electronic cash ledger. In other words, reverse charge liability cannot be discharged by using input tax credit. However, after discharging reverse charge liability, credit of the same can be taken by the recipient, if he is otherwise eligible Tax Liability under Reverse Charge Mechanism ITC: A supplier cannot take ITC of GST paid on goods or services used to make supplies on which the recipient is liable to pay tax. Chakraborty Kapoor & Co. LLP ©
- 7. E-Cash Ledger E-Credit Ledger E-Liability Ledger E-Ledgers Chakraborty Kapoor & Co. LLP ©
- 8. Cash Ledger: This ledger will reflect all deposits made in cash and TDS or (and) TCS made on account of tax payer. This ledger can be used for making any payment on account of GST. Credit Ledger: Self assessed ITC will reflect here in monthly return. Credit of this ledger can only be used to set-off payment of output tax liability and no other payment like penalty, interest, Tax liability under RCM. Liability Ledger: This ledger will reflect total liability of a registered person for the particular month. This ledger will be auto populated when GSTR-1 is filed. E- Ledgers in GST Chakraborty Kapoor & Co. LLP ©
- 9. Connect us CMA C. P. Kalra CMAArunava Chakraborty CMA Md. Rehan Chakraborty Kapoor & CO. LLP Mob: +91-9911299105, +91-9990837823, +91- 011-26275907 Email : cma.rehan@gmail.com Website: www.cmackc.com Address : F-1210, LGF, Chirtanjan Park, New Delhi, 110019