GST Electronic Credit Ledger Utilization Process

Electronic Credit Ledger : Utilization Process

How can the credit available in the Electronic Credit Ledger be utilized?  Can a taxpayer utilize the credit available in one major head to pay tax liability under any other major head?

The amount available in the Electronic Credit Ledger can be utilized for paying off tax liabilities as per the following rules:

1. ITC of IGST will first be utilised for payment of IGST output tax liability and then the balance can be utilized for payment of CGST and SGST in that order.
2. ITC of CGST will first be utilised for payment of CGST output tax liability and then the balance can be utilized for payment of IGST.
3. ITC of SGST will first be utilised for payment of SGST output tax liability and then balance can be utilized for payment of IGST.
4. ITC of CESS can be utilized only against CESS tax liability. CESS credit is not available for cross utilization with other tax liabilities.

Note: Credit of SGST cannot be utilised for payment of CGST and vice versa.

 

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