HC determined that utilizing Input Tax Credit (ITC) available in ...

High Court Rules Cross-Utilization of IGST Input Tax Credit for CGST and SGST Payments Is Legal and Penalty-Free.

January 28, 2025

Case Laws GST HC

HC determined that utilizing Input Tax Credit (ITC) available in IGST under CGST and SGST heads does not constitute improper availment warranting penalties. The electronic credit ledger functions as a wallet with separate compartments for IGST, CGST, and SGST. Despite petitioner's pending appeal, HC exercised jurisdiction under Article 226 to set aside the assessment order, finding that the method of ITC utilization was legitimate. The Court directed proper officer to reconsider the assessment, emphasizing that cross-utilization between different tax heads within the electronic credit ledger is permissible and does not attract penalties. Petition allowed with assessment order set aside for reconsideration.

View Source

← Previous Next →

HC determined that utilizing Input Tax Credit (ITC) available in ...

High Court Rules Cross-Utilization of IGST Input Tax Credit for CGST and SGST Payments Is Legal and Penalty-Free.

January 28, 2025

Case Laws GST HC

You may also like:

Cross utilization of CENVAT Credit - input services - With effect from 2004 when Cenvat Credit Rules, 2004 were issued, it was stated clearly that cross utilization of...

Utilisation of Input Tax Credit - outward supply of Gold & Silver bullion - The applicant/appellant can use the Input Tax Credit Balance available in its Electronic...

Rectification of mistake in Form GSTR-3B by accounting input tax credit as IGST instead of SGST and CGST credit - permission to petitioner to refund IGST Input tax...

Tax authority's action of blocking input tax credit in electronic credit ledger without following due process held untenable. Cross-utilization of credit between CGST...

Manner of making Pre-deposit before filing an Appeal - Utilization of Input Tax credit (ITC) available in the Electronic Credit Ledger (ECL) - The petitioner approached...

Refund of ITC of CGST and SGST - The ITC of CGST and SGST started accumulating correspondingly. In such circumstances, as on date on account of such amendment in...

Petition challenging SCN demanding IGST paid on manpower supply services received by petitioner. Court held State GST Authorities had already initiated proceedings...

CENVAT Credit - The input service credit cannot be denied on the ground that it is shown in the ER1 return instead of the ST3 returns since the cross utilization of...

Cross utilisation of credit on inputs and input services by the same manufacturer for payment of duty of central excise and service tax - utilization allowed - AT

Input Tax Credit (ITC) - Period of limitation u/s 16(4) - After the decision of Supreme Court in the case of Northern Opertaing Systems, the Petitioner discharged IGST...

Rate of Tax on Services - CGST / UTGST / SGST / IGST - GST

Rates of Tax on Goods - Schedule 4 - IGST @ 28% - CGST @ 14% - SGST / UTGST @ 14% - GST

Rates of Tax on Goods - Schedule 3 - IGST @ 18% - CGST @ 9% - SGST / UTGST @ 9% - GST

Rates of Tax on Goods - Schedule 2 - IGST @ 12% - CGST @ 6% -SGST / UTGST @ 6% - GST

Rates of Tax on Goods - Schedule 1 - IGST @ 5% - CGST @ 2.5% - SGST / UTGST @ 2.5% - GST

Quick Updates: