Meaning of SGST Credit for payment of IGST

What is SGST Credit for payment of IGST under GST

 

The details about SGST Credit for payment of IGST are explained here. 

State Goods and Services Tax (SGST) Credit for Payment of IGST:

State Goods and Services Tax (SGST):

State GST would replace State VAT, Entry tax, Octroi, Luxury tax, etc. SGST would be levied on services as well. To enable taxing of services by the State, the Constitutional Amendment Act, 2016 contains suitable provisions. SGST is to be administered by the State Governments. The SGST payable could be set off from the SGST credit or the IGST credit available. The closing input VAT balance available under VAT Act would also be made available to the dealer, as on the date of transition into GST, and could be set off towards SGST (State GST) liability. Further the duty and tax paid on closing stock would also be available as credit, which may not have been claimed as set off in the VAT regime.

 

State Goods and Services Tax (SGST) Credit:

The SGST payable could be set off from the SGST credit or the IGST credit available.

The closing input VAT balance available under VAT Act would also be made available to the dealer, as on the date of transition into GST, and could be set off towards SGST (State GST) liability.

So SGST credit can be utilized for payment of SGST or IGST but not for CGST or UGST.

This post describes about SGST Credit for payment of IGST.   Comment below your thoughts about this post SGST Credit for payment of IGST

 

 

 

 

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