TAX DEMAND ADJUST BY CURRENT ITC

[MUKESH SAXENA]

Gst deptt. imposed tax & intt. demand for the FY. 2018-19 to deposit.

my query is - can we adjust the demand of 18-19 by balance ITC stand in FY 2023-24.

AI Summary

Tax Experts Confirm ITC Can Adjust Past Liabilities, Not Interest or Penalties, Under GST Laws A taxpayer inquired whether a tax demand for the fiscal year 2018-19 could be adjusted using the Input Tax Credit (ITC) balance from the fiscal year 2023-24. Several experts responded, agreeing that while ITC can be used to pay output tax liabilities, it cannot be used for interest, penalties, or fees, which must be paid in cash. They clarified that there is no time limitation for using ITC to pay past tax liabilities, and the government is primarily concerned with the payment of taxes. Adjustments against ITC for past liabilities are permissible under GST laws.