Cash ledger and credit ledger - GST

 Understanding Electronic Cash & Credit Ledger in GST 📊

Many accountants and business owners struggle with GST set-off rules and how to manage Input Tax Credit (ITC) effectively. This guide simplifies it with practical examples on how GST liability is settled using ITC and cash. Key takeaways from the post: ✅ ITC Utilization Rules – IGST credit must be used first before CGST & SGST. ✅ Handling RCM Liabilities – Reverse Charge Mechanism (RCM) payments need to be paid in cash. ✅ Late Fees & Interest – Cannot be adjusted using ITC and must be paid in cash.

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