Section 53 of GST – Transfer of input tax credit. Check GST Section 53 In this section you may find all details for Transfer of input tax credit as per GST Act 2017We Provide Complete Details for All GST Section’s and In this article you may find all details for GST Section 53.

Must Read – List of all sections of GST

Section 53 of GST – Transfer of input tax credit

On utilisation of input tax credit availed under this Act for payment of tax dues under the Integrated Goods and Services Tax Act in accordance with the provisions of sub-section (5) of section 49, as reflected in the valid return furnished under sub-section (1) of section 39, the amount collected as central tax shall stand reduced by an amount equal to such credit so utilised and the Central Government shall transfer an amount equal to the amount so reduced from the central tax account to the integrated tax account in such manner and within such time as may be prescribed.

Related provisions of the Statute

Section or RuleDescription
Section 2(53)Definition of Government
Section 2(62)Definition of input tax
Section 2(82)Definition of output tax
Section 2(94)Definition of registered person
Section 39Furnishing of returns
Section 49Payment of tax
Section 17 (IGST)Apportionment of tax and settlement of funds

Analysis and Updates


This Section provides simple but important modus operandi in respect of post CGST/ SGST/UGTST utilisation towards IGST liability.



U/s 49 (5) (b) (c) and (d) of the Act, SGST / CGST / UTGST credits can be utilised by a tax payer on priority basis to respective SGST / CGST / UTGST dues first. Then, in case of CGST, balance, if any, can be used pay towards IGST. If used so, there shall be reduction in central tax caused by Central Government and equal credit shall be ensured to IGST in the prescribed manner.

Such treatment shall be ensured by the Central Government for UTGST and SGST also in respective cases.

For better clarity, it may please be noted that equivalent provision is there vide Section 18 of Integrated Goods and Services Tax Act 2017.

Frequently Asked Questions

If CGST is utilised to pay towards dues of IGST how the Central Government shall ensure due credit to IGST?

There shall be reduction in CGST on such utilisation; the Central Government shall transfer equivalent amount to the credit of IGST account.

Recommended Articles –

Latest Comments

  1. SCN has been issued and to pay tax related to the notice u/s 73 or 74 , whether i can utilize the ITC available in the electronic credit ledger to pay the tax raised in SCN


Join the Discussion