Transfer of input tax credit
Section 53, CGST Act
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Section 53 provides for the transfer of amounts between the central and integrated tax accounts when ITC is cross-utilised, settling funds between the Centre and States.
What this means in practice
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A settlement provision between the Centre and the States; it creates no obligation on a taxpayer.
How this provision is built
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The exact words of the law
625 characters, uneditedReproduced from the CBIC text. We explain it above — but you should always be able to read it yourself.
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(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.
High Court cases on this section
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What changed, and when
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2017-07-01 · Commenced
Provision as originally enacted in the CGST Act, 2017 (Act 12 of 2017) and brought into force w.e.f. 01-07-2017.
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Where this comes from
Text reproduced from the Central Board of Indirect Taxes and Customs, as available on 2026-09-05. The explanation and practice notes above are GSTZone’s own, written for this hub. If you spot anything out of date, tell us and we’ll fix it — this hub is checked daily against CBIC.
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