Adjustment of excess ITC

This discussion addresses a client's GST query regarding excess Input Tax Credit (ITC) in January 2021. The client has a tax liability of £3,900 but an ITC of £15,600. The experts confirm that the entire ITC can be set off against the output tax, with the remainder carried forward to the next month. The query also touches upon the eligibility for the composite scheme, advising to check the specific timelines.