How to Offset GST Liability in GSTR 3B

Reply—To pay the taxes and offset the liability, perform the following steps:

Click the PROCEED TO PAYMENT button.

The cash available as on date and ITC available (considering ITC of current tax period) are shown in table

System auto-populates “Tax to be paid through ITC” fields with optimum utilization amounts based on provisions of the law relating to credit utilisation. However, you may edit the ITC utilization. As you change ITC utilization, the cash to be paid will also get changed.

Tax liabilities as declared in the return along with the credits gets updated in the ledgers and reflected in the “Tax payable” column of the payment section. Credits get updated in the credit ledger and the updated balance is available and can be seen while hovering on the said headings of credit in the payment section.

If available cash balance in Electronic Cash Ledger is less than the amount required to offset the liabilities, available cash balance is utilized from the Electronic Cash Ledger and additional cash required for paying liability is being reflected in the last column of the Table (Addition cash required). You may create challan for that additional cash directly by clicking on the CREATE CHALLAN button.