No Set off of Input Tax Credit if Wrongly Excess GST Charged ?

By | January 21, 2019
(Last Updated On: January 21, 2019)

Set off of Input Tax Credit if Wrongly Excess GST Charged from Customer?

Mr A has sold Goods having Taxable Value as Rs 1000 and charged GST @ 18% i.e Rs 180 GST instead of 12% GST from Customer .He is having Input Tax Credit Ledger balance of Rs 200, Can he utlilize Rs 180 Input Tax Credit to discharge his Output GST liability of Rs 180/- ?

Section 49 of CGST Act 2017

(4) The amount available in the electronic credit ledger may be used for making any payment towards output tax under this Act or under the Integrated Goods and Services Tax Act in such manner and subject to such conditions and within such time as may be prescribed

Section 2(82) of CGST Act 2017 :

“Output tax” in relation to a taxable person, means the tax chargeable under this Act on taxable supply of goods or services or both made by him or by his agent but excludes tax payable by him on reverse charge basis;


• The word used is “Chargeable” and not ” charged “. Therefore, in case a person wrongly charges tax, or charges an excess rate of tax, as compared to the applicable tax rate, such excess would not qualify as output tax.

• Input tax credit cannot be utilised for making payment of any amount that does not qualify as output tax. The excess tax charged has to be paid by Cash (Through Electronic Cash Ledger)

Leave a Reply

Your email address will not be published. Required fields are marked *