India GST – Order To Recover GST (IGST, CGST, SGST, UTGST)
GST has to be recovered in the correct sequence. This may make it complex for the entities implementing GST but it makes a lot of sense for the authorities, as it stops companies billing from just one location as the amount of GST that can be recovered could be reduced.
Below is a chart that shows the order that GST has to be recovered. First, the IGST that is recoverable in your Payables modules is offset against the IGST you have captured on your sales invoices. If you have any IGST left to recover, then it can then be offset against the CGST on your sales and so on.
Consultant at Innovate Tax
Laura was one of the original employees at Innovate Tax and has developed an excellent knowledge of indirect tax in Oracle. A great problem solver makes her an asset to any project, whether implementing or supporting and has hugely contributed to the multiple awards we have won.