Question15: As per our consultant we may not use CGST/SGST CREDIT against tax liability for IGST. We are off the view that we can use REMAINING balance of CGST/SGST after discharging GST liability of the month. You are requested to EXAMINE & guide if we are right and advise correct practice in case of any deviation as per the legal provisions of GST Act.

Answer: There can be balance in Cash account or credit account .The balance in cash account can't be use for payment of other tax , It means the CGST will used to pay CGST only Section 49 of CGST Act contains relevant provision and permit use of credit of one category for other only when that category is paid  so CGST first is to be used to pay CGST then for  IGST  We have given this illustration in section 49 as well as in question bank given in E book Example no 103

 Section 49: Payment of tax, interest, penalty and other amounts     (Relevant Rules 85 to 88)------

5) The amount of input tax credit available in the electronic credit ledger of the registered person on account of''

(a) integrated tax shall first be utilised towards payment of integrated tax and the amount remaining, if any, may be utilised towards the payment of central tax and State tax, or as the case may be, Union territory tax, in that order;

(b) the central tax shall first be utilised towards payment of central tax and the amount remaining, if any, may be utilised towards the payment of integrated tax;

(c) the State tax shall first be utilised towards payment of State tax and the amount remaining, if any, may be utilised towards payment of integrated tax;

(d) the Union territory tax shall first be utilised towards payment of Union territory tax and the amount remaining, if any, may be utilised towards payment of integrated tax;

(e) the central tax shall not be utilised towards payment of State tax or Union territory tax; and

(f) the State tax or Union territory tax shall not be utilised towards payment of central tax. (Reply dt. 20/11/2017)