2.
Sir,
The ITC is governed by Chapter-V of CGST Act. The Section 16(1) of CGST Act,2017 is as under :-
““16. (1) Every registered person shall, subject to such conditions and restrictions as may be prescribed and in the manner specified in section 49, be entitled to take credit of input tax charged on any supply of goods or services or both to him which are used or intended to be used in the course or furtherance of his business and the said amount shall be credited to the electronic credit ledger of such person”.
From above, if you are registered under GST Act, you are eligible for ITC, subject to conditions and restriction. Moreover, Section 49 (4) of CGST Act, 2017 reads as under:-
“(4) The amount available in the electronic credit ledger may be used for making any payment towards output tax under this Act or under the Integrated Goods and Services Tax Act in such manner and subject to such conditions and within such time as may be prescribed”
On conjoint reading, I am of the view that, you can utilize the ITC for output tax, i.e. other than tax payable under RCM.
Our experts may correct me if mistaken.
Thanks