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GST ITC Set-Off Calculator — Rule 88A Utilisation Order

Input Tax Credit (ITC) utilisation in GST follows a mandatory sequence under Rule 88A of the CGST Rules, 2017. IGST ITC must first be applied against IGST liability. Any remaining IGST ITC can then offset CGST or SGST liability. CGST ITC can only be used for CGST and IGST liability — never for SGST. Similarly, SGST (or UTGST) ITC can only be used for SGST and IGST — never for CGST. Violations of this order can result in demand notices and penalties. This calculator automates the entire sequence, showing you exactly how each credit head is applied, how much carries forward, and how much cash needs to be deposited via the Electronic Cash Ledger — helping your CA firm avoid errors in GSTR-3B and reconcile client ledgers accurately.

Enter ITC & Output Tax Details (₹)

ITC Available in Electronic Credit Ledger

Output Tax Liability

Enter ITC and output tax amounts above to see the utilisation order.

ITC Set-Off Order under Rule 88A (GST)

  1. IGST ITC → IGST liability
  2. IGST ITC (excess) → CGST liability, then SGST liability
  3. CGST ITC → CGST liability, then IGST liability
  4. SGST ITC → SGST liability, then IGST liability
  5. CGST ITC cannot be used for SGST, and SGST ITC cannot be used for CGST

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Frequently Asked Questions

What is the ITC set-off order under GST?+
Under Rule 88A of the CGST Rules, ITC must be utilised in this order: IGST ITC → IGST liability first, then CGST/SGST. CGST ITC can only be used for CGST and IGST. SGST ITC can only be used for SGST and IGST. Importantly, CGST ITC cannot offset SGST liability and vice versa.
Can CGST ITC be used to pay SGST?+
No. CGST ITC cannot be used to pay SGST liability, and SGST ITC cannot be used to pay CGST liability. This cross-utilisation is strictly prohibited. However, IGST ITC can be used to pay either CGST or SGST after exhausting IGST liability.
What is the order for IGST ITC utilisation?+
IGST ITC is first applied against IGST liability. Any remaining IGST ITC can then be used to offset CGST liability and then SGST liability (taxpayer has flexibility in this order after satisfying IGST). This was clarified by the amendment to Rule 88A.
What happens if IGST ITC remains after offsetting all liabilities?+
Excess ITC of any type (IGST, CGST, SGST) that cannot be set off against output tax liability is carried forward to the next tax period in the Electronic Credit Ledger. It cannot be claimed as a cash refund (except for zero-rated supplies and inverted duty structure cases).
When can ITC refund be claimed?+
ITC refund is available in specific cases: (1) Zero-rated supplies — exports and supplies to SEZ, (2) Inverted duty structure — where input tax rate is higher than output tax rate, and (3) Accumulated ITC on cancellation of GST registration. General accumulated ITC cannot be refunded.

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