TaxTMI 
TaxTMI 
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.
TAX DEMAND ADJUST BY CURRENT ITC
05 Jul 2023 
6 Replies 
4698 Views Asked by
Input tax credit usage can discharge past tax demands while interest and penalties must be paid in cash.
The electronic credit ledger may be used to pay output tax-whether self-assessed or payable following proceedings-but not interest, penalty, fees or erroneous refunds. There is no time limit on utilizing availed ITC; the restriction applies only to availing ITC. Therefore, current ITC balance may be applied to discharge past tax demands to the extent of the tax, while interest and penalties must be paid in cash, though departmental disputes may arise. (AI Summary)
The electronic credit ledger may be used to pay output tax-whether self-assessed or payable following proceedings-but not interest, penalty, fees or erroneous refunds. There is no time limit on utilizing availed ITC; the restriction applies only to availing ITC. Therefore, current ITC balance may be applied to discharge past tax demands to the extent of the tax, while interest and penalties must be paid in cash, though departmental disputes may arise. (AI Summary)