Best Ways/Steps to utilise GST Input Tax Credit (ITC)

Here are the steps, which should be followed for utilisation of ITC:

Step 1:

ITC of IGST to be utilised with IGST Liability {Sec. 49(5)(a)}

Step 2:

ITC of IGST can be utilised with CGST and SGST/UTGST in any order/proportion

{Sec 49A having overriding effect and Rule 88A}

THIS STEP IS VERY IMPORTANT. ONE SHOULD BE VERY CAREFUL WHILE APPLYING THIS STEP. THIS STEP CAN HELP TO REDUCE YOUR CASH OUTFLOW IN MAKING GST PAYMENT

Step 3:

ITC of CGST to be utilised with CGST Liability {Sec. 49(5)(b)}

And

ITC of SGST/UTGST to be utilised with SGST/UTGST Liability {Sec. 49(5)(c)/(d)}

Step 4:

Remaining ITC of CGST to be utilised with ITC of IGST {Proviso to Sec 49(5)(b)}

Step 5:

Remaining ITC of SGST/UTGST to be utilised with ITC of IGST {Proviso to Sec 49(5)(c)/(d)}

WE ARE ATTACHING HEREWITH AN EXCEL FILE WHICH WILL HELP IN REDUCING YOUR CASH OUTFLOW

Best ways to utilise GST credit

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