Now let us understand how to set off your input credit against your tax liability in the GST regime.
GST is a dual concept system. On every
transaction (within a state), there will be component of Central GST
(CGST) and State GST (SGST). Integrated GST (IGST) is for interstate
transactions. Therefore, it is important for businesses to know how to
set off the input credit against each of these components in the order
as prescribed by the Law.
The order in which credit needs to be set off is explained in the table below:
