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.