GST Tax Liability Set-Off Calculator (IGST, CGST, SGST)
Once output tax and eligible input tax credit are known for the month, GST law fixes the order in which credits are applied. This calculator follows that order and tells you how much must be paid in cash and how much credit is left.
Your numbers
Include RCM liability on import of services if paid in the same period.
Your results
Simplified model of the utilisation order. IGST credit is applied first to IGST, then to CGST, then to SGST (the taxpayer may choose the split between CGST and SGST). CGST and SGST credits are applied to their own head first and then to IGST, never to each other. Interest, late fee and blocked credits are not included. Confirm with your tax adviser.
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How to use the calculator
Enter the output liability for each head from your sales and RCM data, and the eligible credit balances for each head from GSTR-2B after reversals and blocked credits. The tool applies IGST credit to IGST first, then to CGST, then to SGST. It then applies CGST credit to the remaining CGST and then IGST, and SGST credit to the remaining SGST and then IGST. The result shows cash payable by head and total unused credit. Use it to plan the monthly cash outflow before filing GSTR-3B.
The rules behind it
Section 49 of the CGST Act and Rule 88A set the utilisation order. IGST credit must be exhausted against IGST liability before CGST or SGST credits are used for IGST. CGST credit cannot pay SGST liability and SGST credit cannot pay CGST liability. When IGST credit is left after paying IGST, the taxpayer can use it against CGST and SGST in any order and proportion, and this tool uses CGST first for simplicity.
- IGST credit: IGST, then CGST, then SGST
- CGST credit: CGST, then IGST
- SGST credit: SGST, then IGST
- No cross use between CGST and SGST
Worked example
With the defaults, IGST liability is Rs 4,50,000 and IGST credit Rs 6,00,000. IGST credit clears the IGST liability and leaves Rs 1,50,000, which is applied to CGST. CGST liability falls to Rs 1,70,000, which the CGST credit of Rs 1,50,000 reduces to Rs 20,000. SGST liability of Rs 3,20,000 is reduced by SGST credit of Rs 1,50,000, leaving Rs 1,70,000. Cash payable is Rs 1,90,000 and no credit is left.
Common mistakes
People often use gross credit from the books rather than eligible credit from GSTR-2B. Another error is forgetting that RCM tax must be paid in cash, so it should be subtracted from the set-off pool. Teams also forget that IGST credit choice between CGST and SGST changes the closing balances by head, which matters when the next month has a different liability mix. Keep a record of the split that you choose.
Frequently Asked Questions
In what order is GST input credit used?
IGST credit is used first against IGST, then CGST, then SGST. CGST credit is used against CGST and then IGST. SGST credit is used against SGST and then IGST. CGST credit cannot be used for SGST and the reverse is also not allowed.
Can I pay RCM liability from credit?
No. Tax payable under reverse charge must be paid in cash. Credit can be claimed after the payment, subject to eligibility, and used for later liabilities.
Why does the result show IGST credit against CGST first?
The law lets the taxpayer choose the proportion between CGST and SGST after IGST liability is cleared. The tool uses CGST first as a simple default. You can change the order by swapping the CGST and SGST inputs.
Does this include interest and late fee?
No. Interest on late payment and late fee for delayed returns are separate amounts and are paid in cash. Use a dedicated interest calculator and add the result to the cash payable.
Netray can help pull liability and credit balances from your ERP tax tables into a monthly set-off report with no write-back.
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