ITC Credit Interbranch

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A private limited company registered in both Maharashtra and Karnataka asked if they could use Input Tax Credit (ITC) accumulated in one state to pay GST liability in the other. The answer is no; each state's GST registration is treated as a separate taxpayer. Therefore, ITC from Maharashtra cannot be used to offset liabilities in Karnataka, and vice versa.

MAKARAND DAMLE

MAKARAND DAMLE (Querist)

18 June 2025 A private limited company is having GST registration in the state of Maharashtra & Karnataka

My question is whether the company can claim ITC credit available in Maharashtra to set off liability in Karnataka and vice versa

If yes is there any procedure to be followed ? like filing of any form

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

18 June 2025 No, a company cannot use Input Tax Credit (ITC) accumulated in one state (e.g., Maharashtra) to set off the GST liability of another state (e.g., Karnataka). Even though the company is the same legal entity, each state registration is treated as a separate taxpayer under GST.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

27 September 2025 Good luck..

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