Utilisation of itc

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This discussion explores the utilisation of Input Tax Credit (ITC) under Section 41 of the CGST Act for tax payments made via DRC-03. While the portal allows for ITC adjustment against output tax payable on a self-assessment basis, Section 41 raises questions about its applicability when paying via DRC-03. The consensus is that such payments can be made using ITC without expecting future notices, despite the apparent restriction in Section 41.

Sabita Sahoo

Sabita Sahoo (Querist)
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08 February 2020 As per sec 41 of cgst act,ITC shall be adjusted against output tax payable under self assessment basis u/s 59.Now if we want to pay tax in drc03 in pursuance to DRC 01, then can it be setoff through ITC? Though portal allow to setoff the ITC from credit ledger,sec 41 restrict it.If we pay the tax from credit ledger,can the dept.issue notice in future?