ITC of Current Year to pay tax liability of PYs

[Awmtea Nups]

Can ITC of current FY 20-21 claimed during September 20 be used to pay liabilities of FY 17-18, 18-19 to be paid through DRC-03.

[KASTURI SETHI]

Yes. You can use so. Govt. is compensated by way of payment of interest for the delayed payment of tax.

[Ganeshan Kalyani]

One to one co-relation is not required. So, I am also of the view that ITC can be avialed to knock of previous GST liability.

AI Summary

Input tax credit use permitted to offset earlier GST liabilities through DRC-03, with interest payable for delayed tax. Input tax credit of the current fiscal year may be applied to discharge earlier GST liabilities through the prescribed payment mechanism; one-to-one correlation between ITC claim period and past liability is not required, and applicable interest remains payable on delayed tax.