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INPUT TAX CREDIT

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varun

study

52 Points Posted on 17 November 2020

Is credit of CGST AND SGST can be utilised to pay IGST?

Replies (3)

Quick Summary

This discussion clarifies that input tax credit (ITC) for CGST and SGST can indeed be utilised to pay IGST. Section 49 of the CGST Act 2017 outlines the process, stating that CGST ITC is first applied to CGST output tax, with any remaining balance used for IGST. Similarly, SGST ITC is first used for SGST output tax, and the balance can then be applied to IGST liabilities.

Abhishek Selvam O

374 Points Posted on 17 November 2020

Yes can be utilisied for setoff,,
CGST-First-CGST And IGST
SGST-First-SGST And IGST.

Shivam RC

Student

23693 Points Posted on 17 November 2020

Yes Varun Sir it can be utilised by virtue of Section 49 of the CGST Act 2017.

As per the Provision of Section 49(5) clause (b) of the CGST Act 2017, ITC on account of CGST shall first be utilised to pay CGST Output tax and balance, if any, shall be utilized to pay IGST liability.

Similarly under Provision of Section 49(5) clause (c) of the CGST Act 2017, ITC on account of SGST shall first be utilized towards payment of SGST liability and balance, if any, shall be utilised to pay off IGST liability.