The IGST can be paid by utilizing ITC to the extent available and balance by cash. The use of ITC for payment of IGST will be done in the following order:
• ITC of IGST shall be used for payment of IGST first;
• Once ITC of IGST is exhausted, the ITC of CGST shall be used;
• If ITC of both IGST and CGST are exhausted, ITC of SGST shall be used.
– Remaining IGST liability shall be discharged in cash. GST System will ensure maintenance of this hierarchy for payment of IGST using the credit.
• However, IGST on imports has to be paid in cash only.
(FAQ 3: HANDICRAFTS)