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Use Input for setoff liability

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This query is : Resolved

Tapash Kumar Biswas (Querist)

30 April 2026 I have Rs.80000/- Input (CGST & SGST) lying unused in Electronic credit ledger. The balance remain unused from 2017 -2018 onwards. Can I use to set off the liability ( CGST & SGST) for the FY 2025-2026. Pls advice

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)

30 April 2026 Yes, the balance lying in Electronic Credit Ledger can be used to set off current GST output liability, even if it pertains to earlier years, provided it is valid eligible ITC and not blocked/ineligible credit. There is no separate lapse merely because the credit is from 2017-18 onwards.

CGST credit can be used against CGST liability and then IGST liability. SGST credit can be used against SGST liability and then IGST liability. However, CGST credit cannot be used for SGST liability and SGST credit cannot be used for CGST liability.

Therefore, for FY 2025-26, you may utilise CGST and SGST balance against respective output GST liability through GSTR-3B, subject to normal GST utilisation rules.

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