The manner/order of utilization of input tax credit is as follows:
The amount of IGST credit in the electronic credit ledger can be utilized in the following order:
IGST against IGST-CGST-SGST/UTGST
Eg: If IGST credit available is ` 100, IGST liability is ` 50, CGST liability is ` 40 and SGST/UTGST liability is ` 30. The credit will be utilized as follows: In this case the balance of SGST/UTGST may be paid using SGST/UTGST credit or by cash.
CGST against CGST-IGST
SGST/UTGST against SGST-IGST
SGST/UTGST against CGST or CGST against SGST/UTGST – Not allowed
(ICAI FAQ PUBLICATIONS 06-09-2017 TAX PAYMENTS, INTEREST, PAYMENT AND OTHER AMOUNT: FAQ NO.22)