GST Payment & ITC Set Off Calculator
Automatically calculate ITC set-off to minimize your cash payment. Enter tax payable and ITC amounts below.
| IGST | CGST | SGST | |
|---|---|---|---|
| Tax Payable | |||
| Input Tax Credit |
What is GST ITC set-off?
Input Tax Credit (ITC) is the GST you have already paid on your purchases. When you file your return, you can use this credit to reduce the GST payable on your sales, so you pay the government only the difference in cash.
“Set-off” is the process of applying available ITC against your output tax liability. Because GST has three components — IGST, CGST and SGST/UTGST — the law specifies a fixed order in which credit of one component can be used against the liability of another. Getting that order right decides how much cash you actually pay.
This calculator applies the set-off rules of Section 49A of the CGST Act and Rule 88A automatically, utilising the maximum credit so that your cash outflow is the lowest possible.
How to use this calculator?
Enter the amount of tax payable and input tax credit in the respective boxes. Click on calculate button. The calculator will automatically calculate the amount of tax payable and input tax credit to be carried forward.
You can also change the amount and it will instantly recalculate the amount.
You can also reset the calculator by clicking on the reset button.
Calculator also adjusts the ITC in such manner that maximum ITC can be taken and minimum tax is payable.
What are the ITC Set off rules?
Section 49A of the CGST Act, 2017 and Rule 88A of CGST rules 2017 deals with the ITC set off rules.
- IGST ITC has to be set off against IGST liability first.
- Remaining IGST ITC can be set off against CGST liability and SGST liability in any order.
- IGST ITC have to be set off first before setting off CGST ITC and SGST ITC.
- CGST ITC has to be set off against CGST liability first. Remaining CGST ITC can be set off against IGST liability.
- SGST ITC has to be set off against SGST liability first. Remaining SGST ITC can be set off against IGST liability.
One important restriction: CGST credit can never be set off against SGST liability, and SGST credit can never be set off against CGST liability.
Set-off, offset, adjustment, utilisation — the same step
The same calculation goes by several names in practice. A GST offset calculator, a GST adjustment calculator, an input tax credit calculator and a GST liability or payable calculator are all doing one thing: applying the credit sitting in your electronic credit ledger against the tax you owe on sales, so that only the shortfall is paid in cash.
The order matters because it decides how much cash actually leaves your account. Adjust IGST credit in the wrong sequence and you can end up paying CGST in cash while SGST credit sits unused — a balance you cannot cross-utilise later. This calculator applies the statutory order for you and reports three numbers per head: liability, credit adjusted against it, and net GST payable.
One limit worth remembering: credit can only be adjusted against output tax. Interest, late fee and penalty are always paid in cash, no matter how large the credit balance is.
Frequently asked questions
In what order must IGST credit be used?
IGST credit must first be used against IGST liability. Any balance can then be set off against CGST and SGST liability in any order you choose, and IGST credit must be fully exhausted before CGST or SGST credit is used.
Can CGST credit be set off against SGST liability?
No. CGST credit can only be used against CGST and IGST liability, and SGST credit only against SGST and IGST liability. Cross-utilisation between CGST and SGST is not allowed.
What happens to unused input tax credit?
Any ITC left over after set-off is carried forward to the next tax period in your electronic credit ledger and can be used against future liability.
Does this calculator account for reverse charge (RCM)?
Yes. You can enter liability arising under the reverse charge mechanism, which must be paid in cash, and the calculator separates it from liability that can be settled using ITC.
What is the correct order of ITC set-off?
First fully utilise IGST credit against IGST, then CGST, then SGST liability. Only after IGST credit is exhausted do you use CGST credit (against CGST, then IGST) and SGST credit (against SGST, then IGST).
What do Rule 88A and Section 49A mean?
Section 49A requires IGST credit to be fully used before CGST or SGST credit, and Rule 88A clarifies that the IGST balance can be applied to CGST and SGST liability in any order. This calculator follows these rules automatically.
Is a GST offset calculator the same as an ITC set-off calculator?
Yes. Offset, set-off, adjustment and utilisation all describe the same step — applying available input tax credit against your output GST liability so you pay only the balance in cash. Whichever name you use, this calculator applies the order laid down in Section 49A and Rule 88A.
How do I calculate GST payable after input tax credit?
Take the output tax liability under each head — IGST, CGST and SGST — and subtract the input tax credit the set-off rules allow against that head. The balance is the GST payable in cash through the electronic cash ledger. Enter your liability and credit above and the calculator shows net payable per head along with the credit carried forward.
How is the GST adjustment between IGST, CGST and SGST worked out?
IGST credit is adjusted first — against IGST liability, then against CGST and SGST liability in any order you choose. Only once IGST credit is exhausted is CGST credit adjusted (against CGST, then IGST) and SGST credit adjusted (against SGST, then IGST). CGST and SGST credit can never be adjusted against each other.
Can ITC be used to pay interest, late fee or penalty?
No. Input tax credit can only be used to pay output tax liability. Interest, late fee and penalty must always be paid in cash through the electronic cash ledger.
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