State with reasons whether the following statements are true or false under GST Law: CGST Balance of one state can be adjusted to set off CGST Liability of another state.
CS Professional · Advanced Tax Laws · PYQS · June 2021
State with reasons whether the following statements are true or false under GST Law: CGST Balance of one state can be adjusted to set off CGST Liability of another state.
Answer & Explanation:
False. CGST balance of one state cannot be adjusted to setoff CGST liability of another state. Under the GST Laws, there is no provision permitting utilization of input tax credit balance of one registered person by another registered person in the same state or any other state even both the registered persons are distinct or related persons.
Topics: GST - Input Tax Credit
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