Credit utilisation

This discussion clarifies how businesses operating within the same state can utilise GST credit. When purchasing goods from one location (Y) and selling them in another (X) within the same state, the input tax credit (ITC) of CGST and SGST paid on purchases can be set off against the CGST and SGST liabilities on sales. This intra-state credit utilisation is permissible, and consolidated accounting across branches can help manage these transactions effectively.