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<h1>Transfer of input tax credit causes integrated tax reductions and mandates transfers to corresponding tax accounts under prescribed procedures.</h1> Transfer of input tax credit requires reduction of integrated tax collections when integrated tax credit is used to pay central, union territory, or state tax, and mandates the Central Government to transfer corresponding amounts from the integrated tax account to the central tax account, union territory tax account, or to the appropriate State Government's account respectively, in the manner and within the time prescribed. 'Appropriate State' is defined as the State or Union territory where the taxable person is registered or liable to be registered.
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