Rules for Utilization of Amount in Electronic Ledger:

Utilization of amount in cash ledger: As per section 35 (3) of the act, amount available in the electronic cash ledger may be used for making any payment towards:

• tax,
• interest,
• penalty,
• Fees,
• any other amount payable

Utilization of amount in credit ledger: As per section 35 (4) of the act, amount available in the electronic credit ledger may be used for making any payment towards:

• making any payment towards tax.

ITC Utilization Rules

ITC Utilization shall be made in the following order:

As per Section 35 (5) (a) of the act, the amount of input tax credit on account of IGST available in the electronic credit ledger shall

(a) first be utilized towards payment of IGST liability
(b) IGST credit, if available, may be utilized towards payment of CGST liability
(c) IGST credit, if available, may be utilized towards payment of SGST liability

As per section 35 (5) (b) in CGST act, the amount of input tax credit on account of CGST available in the electronic credit ledger shall:

(a) first be utilized towards payment of CGST liability
(b) CGST credit, if available, to set-off IGST liability, if any

As per section 35 (5) (b) in SGST Act, the amount of input tax credit on account of SGST available in the electronic credit ledger shall:

(a) first be utilized towards payment of SGST liability
(b) SGST credit, if available, to set-off IGST liability, if any

As per section 35 (5) (c) of the act, cross utilization of credit between CGST & SGST shall not be permitted.