Goods and Services Tax

The following help topics should be kept in mind for off-setting the liabilities in GSTR-3B:

1. The offset liability function is available only once for use in a tax period. There is no facility of setting off liabilities in part.
2. Offset liability is successful only if the offset criteria is met and complete liabilities are offered for set off in the payment section.
3. No offset can be done more than the liabilities payable as per the declaration in table 3.1
4. Payment of the following can be done only through cash and not through credit
• Reverse charge related liabilities can be paid off only though balance available in the cash ledger.
• Late fee and interest can be paid off only through balance available in cash ledger
5. ITC can be utilized in the following manner as per following prioritization for payment of tax liability other than reverse charge liability.
• Credit available under IGST head shall be utilized for the payment of IGST liability, the remaining IGST credit can be utilised for liability under CGST or SGST/UTGST in any order, before using the CGST or SGST/UTGST credit.
• Liabilities still left out in respect of any major head can be set off with the credit, if any available in other major heads as per the credit utilization rules:
• IGST liability: Balance IGST liability can be set off with the CGST credit available after payment of CGST liability, if any. In case, still IGST liability remains, the same can be set off with SGST credit, if available after payment of SGST liability.
• CGST liability: Balance CGST liability can be set off with IGST credit available after payment of IGST liability, if any.
• SGST liability: Balance SGST liability can be set off with IGST credit available after payment of IGST and CGST liability, if any.
• Liabilities still left out if any can be paid off only through cash after making sufficient balance available in the cash ledger.
6. Interest to be paid on tax liabilities both for supplies attracting reverse charge as well as other than reverse charge.
7. Late fee for the month includes late fee charged due to delay in filing of previous month's GSTR-3B. The computation is based on the formula: [Date of Filing – Due date of Filing] * ₹25/day (in case of any liability) or ₹10/day (in case of nil liability)] per Act (CGST/SGST).