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.
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.