Manner of Input Credit Utilisation in GST

In GST, People are generally confuse, what is the proper manner and rank of using ITC while adjusting with output liabilities. So below are manner of utilising Input tax credit,

1. Input IGST: First of all, Input IGST should be utilised

    a. IGST Input should be adjusted first with IGST liability firstly.

    b. then remaining IGST input, if any, should be adjusted with CGST liability and/or SGST liability in any manner and in any ratio. 

2. Input CGST: Secondly, Input CGST should be utilised after utilising the entire Input IGST

    a. CGST Input should be adjusted first with CGST liability.

    b. then remaining CGST input, if any should be adjusted with IGST liability.

2. Input SGST/UTGST: Thirdly, Input SGST/UTGST should be utilised after utilising the entire Input     IGST and Input CGST

    a. SGST/UTGST Input should be adjusted first with SGST/UTGST liability first.

    b. then remaining SGST/UTGST input, if any should be adjusted with IGST liability.

ITC should be utilised in the said manner and in the said rank.  However this is subject to rule 86B

If you like the post, do share the same with your friends and Join our telegram group @GST_Updates