CGST Liability to be utlized at first with CGST ITC or IGST ITC

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This query is : Resolved

Quick Summary

When settling your Central Goods and Services Tax (CGST) liability, you must first use any available Integrated Goods and Services Tax (IGST) Input Tax Credit (ITC). Only after the IGST ITC has been fully utilised can you then apply your CGST ITC to cover any remaining CGST liability. This prioritisation ensures compliance with GST regulations.

Mahabir Prasad Agarwal

Mahabir Prasad Agarwal (Querist)

12 February 2024 Whether CGST ITC is to be utilized at first with CGST ITC or withIGST ITC ?

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)

12 February 2024 Firstly IGST ITC will be utilised

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

03 November 2026 Order of ITC Utilization for CGST Liability:
First, utilize IGST ITC: Any available Integrated Tax (IGST) credit must be fully exhausted first against the Central Tax (CGST) liability.

Second, utilize CGST ITC: Only after exhausting the available IGST credit can you utilize your Central Tax (CGST) credit to pay off the remaining CGST liability.

(Note: CGST ITC cannot be used to pay SGST/UTGST liability, and vice versa, until IGST credit is exhausted.)

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