After declaring outward supplies in Table 3 tax liability and claiming eligible inward credits in Table 4, taxpayers must settle their net tax payable in Table 6.1. The screen displays your total tax liability alongside available electronic credit and cash ledger balances. While the portal proposes an auto-offset calculation, accountants frequently face unexpected cash challan demands when the system default exhausts credit balances unevenly across state tax heads.
The statutory credit offset hierarchy under Section 49A and Rule 88A
Credit utilization is governed by Section 49A of the CGST Act and Rule 88A of the CGST Rules (inserted by Notification No. 16/2019-Central Tax). The rule mandates a strict sequence for exhausting input tax credit:
- Exhaust IGST credit first: Integrated tax credit must be completely utilized towards payment of integrated tax liability first.
- Allocate remaining IGST credit: Any balance IGST credit remaining after discharging IGST liability can be utilized towards central tax (CGST) and state or union territory tax (SGST/UTGST) in any order and in any proportion.
- Utilize CGST and SGST credit only after IGST credit is zero: As prescribed under Section 49A, credit of CGST or SGST/UTGST can be used only after the entire input tax credit available under IGST is fully exhausted.
- Cross-utilization prohibition: As stipulated in Section 49(5) of the CGST Act, CGST credit can pay CGST liability first and then IGST, but can never be utilized for SGST liability. Similarly, SGST credit can pay SGST liability first and then IGST, but can never pay CGST liability.
Common mistake: Accepting the portal auto-suggested offset without review. The portal algorithm may allocate all remaining IGST credit to CGST, leaving a zero IGST balance for SGST. If you have surplus CGST credit but inadequate SGST credit, you will face an artificial cash deficit for SGST even when your cumulative credit ledger holds enough funds.
Cash ledger rules and reverse charge restrictions
Electronic cash ledger deposits and debits operate under specific statutory guardrails in Table 6.1:
- Reverse charge requires pure cash: Under Section 49(4) read with Section 2(82) of the CGST Act, amounts in the electronic credit ledger can only be used for paying output tax. The law defines output tax as tax chargeable on taxable supplies made by the taxable person, excluding tax payable on reverse charge basis. Consequently, reverse charge liability must be paid entirely in cash as detailed in the GSTN Table 6.1 user guide.
- Single offset rule: Tax offset in Table 6.1 can be completed only once per tax period and cannot be executed in parts. Once submitted and debited, the transaction cannot be recalled.
- Interest relief for pre-due date cash balances: Under the proviso to Rule 88B(1) of the CGST Rules, where an amount has been credited to the electronic cash ledger on or before the return filing due date but is debited during late filing, that balance is excluded when computing delayed interest.
- Reallocating cash heads: If cash was mistakenly deposited under the wrong tax head, you do not need to create an additional challan. Under Section 49(10) and Rule 87(13), you can file Form GST PMT-09 on the portal to transfer funds across major or minor heads within the electronic cash ledger before completing the Table 6.1 offset.
Step-by-step navigation in Table 6.1
- Review liability figures: Verify the outward tax liabilities shown in Table 6.1 against your filed GSTR-1 and the summary in Table 3.
- Check ledger balances: Examine the available credit ledger and cash ledger balances displayed at the top of the payment screen.
- Adjust credit utilization columns: If the default distribution allocates IGST credit disproportionately, manually adjust the editable credit cells under the Paid through ITC columns (Integrated Tax, Central Tax, State Tax).
- Verify cash requirement: Review the cash ledger debit columns. Ensure any cash demand matches your planned challan and is not an unintended shortfall from inefficient credit distribution.
- Preview draft summary: Click the preview draft button to review the summary PDF before payment execution. The preview file carries a draft watermark as noted in GSTN instructions.
- Offset liability: Click Make Payment or Post Credit to Ledger to complete the debit and proceed to filing with DSC or EVC.
Worked example: manual offset versus portal default
Consider an enterprise, M/s Alpha Logistics, filing Form GSTR-3B with outward tax liabilities and opening input tax credit balances as follows:
| Tax head | Output tax liability | Available ITC balance | Net position before offset |
|---|---|---|---|
| IGST | ₹50,000 | ₹1,20,000 | Surplus ITC: ₹70,000 |
| CGST | ₹60,000 | ₹35,000 | Deficit: ₹25,000 |
| SGST | ₹60,000 | ₹15,000 | Deficit: ₹45,000 |
| Total | ₹1,70,000 | ₹1,70,000 | Net cumulative balance: ₹0 |
Notice that total output tax (₹1,70,000) exactly equals total available ITC (₹1,70,000). However, the tax distribution across heads determines whether cash payment is required.
Scenario A: Portal default distribution without manual adjustment
The system offsets IGST liability of ₹50,000 against IGST credit, leaving ₹70,000 IGST credit remaining. The portal auto-populates the next available row by setting off CGST liability (₹60,000) entirely against the remaining IGST credit. This consumes ₹60,000, leaving only ₹10,000 of IGST credit to set off against SGST:
| Liability head | Output tax | Paid via IGST credit | Paid via own credit | Cash payable required |
|---|---|---|---|---|
| IGST | ₹50,000 | ₹50,000 | ₹0 | ₹0 |
| CGST | ₹60,000 | ₹60,000 | ₹0 (₹35,000 unused) | ₹0 |
| SGST | ₹60,000 | ₹10,000 | ₹15,000 | ₹35,000 |
| Total | ₹1,70,000 | ₹1,20,000 | ₹15,000 | ₹35,000 |
In Scenario A, the taxpayer is forced to deposit ₹35,000 in cash for SGST while ₹35,000 of CGST credit remains locked and unutilized, because CGST credit cannot cross-utilize against SGST.
Scenario B: Optimal offset under Rule 88A
By manually editing the editable ITC fields in Table 6.1 before payment, the accountant splits the ₹70,000 surplus IGST credit according to actual deficit needs: ₹25,000 to CGST and ₹45,000 to SGST.
| Liability head | Output tax | Paid via IGST credit | Paid via own credit | Cash payable required |
|---|---|---|---|---|
| IGST | ₹50,000 | ₹50,000 | ₹0 | ₹0 |
| CGST | ₹60,000 | ₹25,000 | ₹35,000 | ₹0 |
| SGST | ₹60,000 | ₹45,000 | ₹15,000 | ₹0 |
| Total | ₹1,70,000 | ₹1,20,000 | ₹50,000 | ₹0 |
Formula verification: Total tax paid = ₹1,20,000 (IGST credit) + ₹35,000 (CGST credit) + ₹15,000 (SGST credit) = ₹1,70,000. Cash required is ₹0. Manual optimization preserves working capital by avoiding unnecessary cash deposits.
Common pitfalls in Table 6.1
- Overlooking negative liability: Adjustments from earlier periods or excess payments in previous returns reflect as negative liability. Check that credit balances are not consumed against figures that have already been offset by previous adjustments.
- Late fee auto-computation: As specified in the GSTN manual, late fee is auto-calculated and reflected in Table 5.1 of the subsequent period return based on the number of days delayed. Late fee can only be discharged in cash and cannot be paid through input tax credit under Section 49(4).
- Attempting to pay interest with credit: Interest under Section 50 must be paid in cash. The electronic credit ledger is strictly reserved for output tax.
Frequently asked questions
Can reverse charge liability be paid using input tax credit in Table 6.1?
No. Under Section 49(4) read with Section 2(82) of the CGST Act, reverse charge supplies do not qualify as output tax in the hands of the recipient. The GST portal automatically blocks credit ledger offset for reverse charge, requiring payment in cash.
Can an offset in Table 6.1 be modified or reversed after filing?
No. The GST portal allows tax offset only once per tax period and not in part. Once you click make payment or post credit to ledger and file Form GSTR-3B, the ledger debit is final and cannot be modified.
What happens if cash is deposited under the wrong tax head?
Under Section 49(10) and Rule 87(13), you can file Form GST PMT-09 on the GST common portal to reallocate cash across major heads or minor heads before offsetting your Table 6.1 liabilities.
Check your own GSTR-2B before filing
Match your purchase register against the auto-drafted GSTR-2B statement to verify that every eligible credit is claimed in Table 4 before completing your Table 6.1 offset. Your GSTR-2B and purchase register files are read in your browser and never uploaded to any server.
Last checked: 28 October 2026. Sources: CBIC Tax Information Portal, GSTN GSTR-3B User Manual.