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Question

Which of the following statements are true about input tax credit?

Statement 1: Input tax credit of SGST can be utilised for payment of SGST first and the balance for payment of IGST on outward supply.

Statement 2: Input tax credit of UTGST can be utilised for payment of UTGST first and the balance for payment of IGST on outward supply.

Statement 3: Input tax credit of CGST can be utilised for payment of CGST first and the balance for payment of IGST on outward supply.

A Statements 1 and 3 only Correct Answer Incorrect Answer
B Statements 1, 2 and 3 Correct Answer Incorrect Answer
C Statements 1 and 2 only Correct Answer Incorrect Answer
D Statements 2 and 3 only Correct Answer Incorrect Answer

Solution

All three statements are true about input tax credit, input tax credit of respective GST components can be utilized to pay the tax liability of the same component first, and any remaining credit can be used for payment of IGST on outward supplies.

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