ITC utilise query

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This query is : Resolved

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This discussion clarifies the rules for utilising Input Tax Credit (ITC) for Goods and Services Tax (GST). It explains that IGST credit must first be used against IGST liability. Any remaining IGST credit can then be applied to CGST and SGST liabilities in any order or proportion. This is a mandatory requirement under current GST regulations.

deepak

deepak (Querist)
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23 June 2023 Igst credit 50000, Cgst credit 10000, Sgst credit 10000 available, in such case outward igst liability 5000, cgst outward liablility 15000 and sgst outward liability 15000. In such case can we use full IGST credit 50000 against IGST, CGST and SGST liablility?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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25 June 2023 Yes, after nullifying IGST liability against IGST Credit, if any IGST Credit is available, same can be utilized against CGST Liability and SGST Liability, in any order and in any proportion.