Setting off GST payments involves offsetting output tax liability against available Input Tax Credit (ITC) on the GST portal during GSTR-3B filing. IGST credit must be exhausted first, followed by CGST/SGST/UTGST, utilizing the "Make Payment/Post Credit to Ledger" button. Remaining liability is paid via electronic cash ledger.
Here is the correct order of set-off:
Step 1: Login to the portal The taxpayer has to login to the official GST Portal. Step 2: Enter the Credentials In the GST Portal, the taxpayer has to enter the credentials. Step 3: Click on Payment towards Demand From the 'Services' tab, click on 'Ledgers' option and then select 'Payment towards Demand'.
✔ If monthly taxable turnover > ₹50 lakh (excluding exempt and zero-rated supplies), ✔ Minimum 1% of GST liability must be paid in cash, ✔ The remaining 99% may be paid through ITC. Applicable to registered persons under GST whose monthly taxable supply exceeds ₹50 lakh.
Step-By-Step Solution
To record a GST Payment (BAS Payment) in the GST centre:
Set-off loss means deducting the losses against any other profits of the same financial year. In other words, reducing the taxable Income against such losses saves taxes.
GST payment is to be made when the GSTR 3 is filed i.e by 20th of the next month.
India's GST regime is undergoing a landmark transformation with the 56th GST Council meeting unveiling GST 2.0 - next-generation reforms simplifying tax slabs to 5%, 18%, and 40%. Effective from September 22, 2025, these reforms aim to ease compliance, boost consumption, and fuel economic growth.
Step 1: Check whether all GST challans paid by the organisation are correctly recorded in the respective Payables ledger. Step 2: Match ITC claimed in GSTR-3B with that recorded in the books of accounts. Pass an adjustment entry in case of mismatch.
Apply Offset Rules:
GST can be paid online using Inland Revenue's myIR service.
Activate GST for Regular Dealers
Subtracting GST:
Output tax credit or output tax set-off is a system in which businesses can set off the GST collected (output tax) against the GST paid (input tax). In other words, it allows businesses to adjust or deduct the GST already paid on purchases from the GST they owe to the government on sales.
Non-resident Indians (NRIs) are eligible for GST refunds on specific transactions. Primarily, health and life insurance premiums paid from NRE accounts are eligible for claiming GST refunds. Claiming a refund of GST paid involves registration on the GST portal and filing the RFD-01 form.
Types of GST in India
CGST (Central Goods and Services Tax) SGST (State Goods and Services. IGST (Integrated Goods and Services Tax) UTGST (Union Territory Goods and Services Tax)
The 'five year rule' states that residential premises are not considered to be 'new' if they have been rented out as residential premises for five or more years since they first became residential premises, or were last built or substantially renovated.
Section 69 of CGST Act, 2017 : Section 69: Power To Arrest
(a) where a person is arrested under sub-section (1) for any offence specified under sub-section (4) of section 132, he shall be admitted to bail or in default of bail, forwarded to the custody of the Magistrate; (b) in the case of a non-cognizable and.
Using the wrong tax codes or accounting method
Many GST mistakes are the result of using incorrect tax codes or the wrong accounting method: Tax codes: If a GST-free sale is coded as taxable in your accounting system, you'll pay GST unnecessarily. If a taxable sale is coded GST-free, you'll underpay.
If your GST turnover is below the $75,000 threshold, you may choose to register. But if you do, regardless of your turnover, you must: include GST in the price of most goods and services you sell. claim GST credits for most business purchases you make.
Making GST payments using Over the Counter at authorized banks before and after logging into GST Portal
With the new rules in place, it is mandatory to utilise the entire IGST available in electronic credit ledger before utilising ITC on CGST or SGST. The order of setting off ITC of IGST can be done in any proportion and any order towards setting off the CGST or SGST output after utilising the same for IGST output.
Equitable set-off (also known as transaction set-off).
A debtor can simply deduct the amount of its cross-claim from the debt it owes to the creditor and tender the balance of the debt (if any) to the creditor.
Loss from speculative business cannot be set off against any other income. However, non-speculative business loss can be set off against income from speculative business. Loss under head "Capital gains" cannot be set off against income under other heads of income.