UTGST & Compensation Cess

Transfer of input tax credit

UTGST s.10, UTGST Act

Chapter chapteriv Text as on 2026-09-05 Source CBIC

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In one line

Where UTGST credit is used to pay IGST, the Centre transfers a matching amount from the UTGST account to the IGST account – a settlement provision.

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(1) of section 39 of the Central Goods and Services Tax Act, the amount collected as Union territory tax shall stand reduced by an amount equal to such credit so utilised and the Central Government shall transfer an amount e…

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Section 10. Transfer of input tax credit. On utilisation of input tax credit of Union territory tax 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 of the Central Goods and Services Tax Act, as reflected in the valid return furnished under sub-section

(1) of section 39 of the Central Goods and Services Tax Act, the amount collected as Union territory 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 Union territory tax account to the integrated tax account in such manner and within such time as may be prescribed.

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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 If you spot anything out of date, tell us and we’ll fix it — this hub is checked daily against CBIC.

utgst section 10transfer of input tax credit

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