Utilisation of ITC availed

[Archna Gupta]

Dear Experts

Please give clarity on below mentioned query:

Can we utilize ITC for payment of GST liability of FY 2017-18 in the month of November 2018 if balance in credit ledger which was availed in FY 2017-18 has already been exhausted and the balance in credit ledger in current month is related to current financial year.

In other words period wise matching of ITC availed and utilised is necessary or not?

Please revert.

AI Summary

Input tax credit utilisation allowed across periods; credit claim barred after return deadline and interest must be paid cash.
Utilisation of input tax credit is not restricted to the period in which it was availed and a one to one periodwise matching of availed and utilised ITC is not required. Section 16(4) governs the time limit for taking or claiming ITC but does not by its terms limit utilisation of credit once in the electronic credit ledger. The electronic credit ledger may be used to pay output tax, whereas interest on delayed tax must be paid from the cash ledger, and revenue authorities may take differing views.