Input tax shall be credited to electronic credit ledger on the basis of return filed by taxable person. The amount available in electronic credit ledger may be used for payment of output tax liability in sequence mentioned below but it cannot be used for making payment of interest, penalty, fees etc.
Input tax credit in respect of IGST, CGST, Cess and SGST/UTGST can be utilized in following sequence:
Input Tax Credit |
Tax Credit Utilization Preference |
IGST |
IGST |
CGST |
SGST |
X |
CGST |
CGST |
IGST |
X |
X |
SGST |
SGST |
IGST |
X |
X |
Cess |
X |
X |
X |
Cess |
Credit of CGST cannot be setoff with Credit of SGST and vice versa. Credit of one state of SGST cannot be setoff with SGST of another state. TIC of Cess will be utilized for Cess only. |
