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How will the settlement between Centre, exporting state and importing state be done?
Team SoOLEGAL | 01/01/1970

There would be settlement of account between the centre and the states on two counts, which are as follows-

Centre and the exporting state: The exporting state shall pay the amount equal to the ITC of SGST used by the supplier in the exporting state to the Centre.

Centre and the importing state: The centre shall pay the amount equal to the ITC of IGST used by a dealer for payment of  SGST  on  intra- state supplies.

The settlement would be on cumulative basis for a state taking into account the details furnished by all the dealer in the settlement period. Similar settlement of amount would also be undertaken between CGST and IGST account.


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