Verified · 29 Sept 2026
GST Payable Calculator – ITC Set-off (Rule 88A)
Enter your sales by rate and your ITC. See output tax, the set-off order required by law, and exactly how much cash you need to pay.
✓ Verified against official notifications · 29 Sept 2026 · How we verify →
Recent change: GST 2.0: 4 slabs collapsed to 5% / 18% with 40% de-merit rate (22 Sept 2025)
Outward supplies
ITC available (electronic credit ledger)
Output IGST
₹36,000
Output CGST
₹47,500
Output SGST
₹47,500
Cash payable
₹56,000
| Credit used | vs IGST | vs CGST | vs SGST |
|---|---|---|---|
| IGST credit | ₹30,000 | ₹0 | ₹0 |
| CGST credit | ₹0 | ₹25,000 | not allowed |
| SGST credit | ₹0 | not allowed | ₹20,000 |
| Cash | ₹6,000 | ₹22,500 | ₹27,500 |
Credit carried forward: IGST ₹0 · CGST ₹0 · SGST ₹0
- IGST credit is used first (Rule 88A), then CGST and SGST credit. CGST and SGST credit can never be used against each other.
- Reverse charge tax must be paid in cash; ITC can be claimed on it in the same return.
FY 2026-27 · GST 2.0 slabs (5% / 18% / 40%) from 22 Sept 2025 · interest on net cash only (s.50 proviso, CBIC Circular 26/2022)Verify on gst.gov.in →Share on WhatsApp
For estimation only. This calculator applies the rules as we understand them on 29 Sept 2026. It is not legal or tax advice. Verify with the official notification or consult a Chartered Accountant / labour-law professional before filing or changing payroll.
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Why the set-off order changes your cash
The law fixes which credit pays which tax. IGST credit is used first, against IGST, then against CGST or SGST. CGST credit pays CGST and then IGST, and SGST credit pays SGST and then IGST. CGST credit can never pay SGST, or the other way round. Within those rules there is still a choice about where leftover IGST credit goes, and a poor choice leaves credit stranded while you pay cash.
Worked example
A trader sells ₹10 lakh within the state and ₹5 lakh to other states in a month, all at 18%. Output tax is IGST ₹90,000, CGST ₹90,000 and SGST ₹90,000. The credit ledger holds IGST ₹1,20,000, CGST ₹40,000 and SGST ₹70,000.
| Step | IGST | CGST | SGST |
|---|---|---|---|
| Output tax | ₹90,000 | ₹90,000 | ₹90,000 |
| IGST credit (₹1,20,000) | −₹90,000 | −₹30,000 | — |
| CGST credit (₹40,000) | — | −₹40,000 | — |
| SGST credit (₹70,000) | — | — | −₹70,000 |
| Cash payable | ₹0 | ₹20,000 | ₹20,000 |
Total cash: ₹40,000, with no credit left over. The leftover ₹30,000 of IGST credit went to CGST, the head where own credit was short by more. Put it against SGST instead and SGST credit ends up ₹10,000 higher than SGST tax. That ₹10,000 cannot touch CGST, so cash rises to ₹50,000 and the credit sits idle. The calculator always picks the order that minimises cash.
What must be paid in cash
- Tax under reverse charge. You claim the same amount back as credit in that return, if it is otherwise eligible.
- Interest, late fees and penalties.
- At least 1% of output tax, for businesses whose taxable supplies exceed ₹50 lakh in a month (Rule 86B). Several exceptions apply, such as having paid more than ₹1 lakh of income tax in each of the last two years. The calculator does not apply this rule, so check it separately.
Rates to use
Since 22 September 2025 most goods and services fall in the 5% or 18% slabs, with 40% for specified luxury and sin goods. Enter each sale at the rate for its HSN or SAC; the HSN and SAC lookup helps find the right code. If the return is late, carry the cash figure into the interest and late fee calculator, since interest is charged only on the cash part.
Official sources
Frequently asked questions
In what order is ITC used?
IGST credit first — against IGST, then CGST and SGST in any order. Then CGST credit against CGST and then IGST, and SGST credit against SGST and then IGST.
Can CGST credit pay SGST?
No. CGST and SGST (or UTGST) credits can never be set off against each other.
Can reverse charge tax be paid with ITC?
No. Tax under reverse charge must be paid in cash. ITC on it can be claimed in the same month.
What rates apply after GST rationalisation?
From 22 September 2025 most goods and services fall in the 5% or 18% slabs, with 40% for specified luxury and sin goods, and special rates such as 3% for precious metals.