Input Tax Credit Transfer | What is GST bill

In order to understand the concept of Input Tax Credit Transfer, we should first understand What is GSt bill all about.

GST is a Value added Tax (VAT) is proposed to be a comprehensive indirect tax imposed on manufacture, sale and consumption of goods as well as services all across. GST will help in replacing all indirect taxes levied on goods and services by the Centre and State.

After understanding What is GST bill let us now move towards Input tax credit transfer which covers Section 47 – Transfer of Input Tax Credit

Section 47 – Transfer of Input Tax Credit

CGST ACT

On utilization of input tax credit availed under the CGST Act for payment of tax dues under the IGST Act as per sub-section Error! Reference source not found. of section 44, the amount collected as CGST shall stand reduced by an amount equal to the credit so utilized and the Central Government shall transfer an amount equal to the amount so reduced from the CGST account to the IGST account in the manner and time as may be prescribed.

SGST ACT

On utilization of input tax credit availed under the SGST Act for payment of tax dues under the IGST Act as per sub-section Error! Reference source not found. of section 44, the amount collected as SGST shall stand reduced by an amount equal to the credit so utilized and shall be apportioned to the Central Government and the State Government shall transfer an amount equal to the amount so apportioned to the IGST account in the manner and time as may be prescribed.

 

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