Enhanced GST ITC Set-Off Excel Utility as per 19-02-2026 Advisory

1. Background: Change in GST ITC Utilisation Rules

With effect from the tax period of February 2026, the GST Portal has implemented a significant change in the manner Input Tax Credit (ITC) can be utilised for payment of IGST liability reported in Table 6.1 of GSTR-3B.

As per the GST Advisory dated 19th February 2026, once the available IGST ITC is fully utilised, the Portal now permits the IGST liability to be discharged by using CGST and SGST ITC in any order or proportion, subject to the revised utilisation rules.

In line with this development, a dedicated Excel-based GST ITC Set-Off Utility has been created to mirror the updated Portal behaviour and assist assessee in accurate monthly GST computations.

2. Objective of the GST ITC Set-Off Excel Utility

The primary purpose of this Excel tool is to:

  • Align ITC utilisation workings with the GST Advisory dated 19-02-2026
  • Reflect the new flexibility in utilising CGST and SGST ITC towards IGST liability after full utilisation of IGST ITC
  • Support accurate computation of:
    • Tax payable under IGST, CGST, SGST
    • ITC utilisation across these heads
    • ITC balances to be carried forward

The tool is particularly useful for:

  • Preparation of monthly GSTR-3B workings
  • Cross-verification of tax liability and ITC figures with the Electronic Credit Ledger
  • Providing a structured and standardised approach for ITC set-off under the revised framework

3. Key Change: Cross-Utilisation of CGST & SGST ITC Towards IGST

3.1 Earlier Position vs New Facility

Earlier, the utilisation of CGST and SGST ITC towards IGST liability was more restricted in terms of order and pattern. With the implementation of the 19-02-2026 Advisory, once:

  1. Complete available IGST ITC is first exhausted against IGST liability,

then:

  1. The remaining IGST liability reported in Table 6.1 of GSTR-3B can now be discharged from:
    • CGST ITC, and/or
    • SGST ITC

in any sequence or ratio, as permitted by the updated Portal logic.

3.2 Practical Impact on Monthly Computations

For the assessee, this implies:

  • More flexibility in managing ITC pools
  • Potential for better optimisation of credits
  • Necessity for careful working to ensure the Excel computation matches the Portal’s automated utilisation

The Excel tool is designed specifically to address this requirement by incorporating a percentage-based cross-utilisation mechanism for CGST and SGST ITC towards residual IGST liability.

4. Core Features of the Excel GST ITC Set-Off Tool

4.1 Percentage-Based Set-Off for IGST Liability

After applying IGST ITC completely, the tool allows the user to set:

  • A percentage of CGST ITC to be utilised against remaining IGST liability
  • A percentage of SGST ITC to be utilised against remaining IGST liability

This configuration mimics the flexible sequence and proportion now allowed on the GST Portal.

Note: The percentages can be adjusted based on the assessee’s ITC position and desired utilisation pattern, provided it remains consistent with the Portal’s rules and final outcome.

4.2 Integration with Electronic Credit Ledger Balances

The tool begins with capturing opening ITC balances as reflected in the Electronic Credit Ledger on the GST Portal at the start of the tax period, including: