GSTN Advisory, Dated 19-02-2026
The Goods and Services Tax Network (GSTN) has issued an advisory clarifying the utilisation of Input Tax Credit (ITC) for payment of IGST liability in Form GSTR-3B. The clarification aims to provide operational guidance to taxpayers regarding the sequence and flexibility in using available ITC balances.
1. Order of Utilisation of ITC for IGST Liability
As per the advisory, taxpayers are permitted to utilise CGST or SGST ITC in any order for discharging IGST liability, subject to the condition that:
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IGST ITC must be fully exhausted first before using CGST or SGST ITC.
Once the IGST credit balance is completely utilised, taxpayers may apply CGST and SGST credits in any preferred sequence to pay the remaining IGST liability.
2. Reference to Earlier Advisory
The clarification refers to Point 3 of the earlier advisory dated 30-01-2026, which addressed the utilisation of ITC balances. The present advisory has been issued to provide further operational clarity and facilitate smoother compliance.
3. Applicability and Effective Date
GSTN has specified that the revised functionality and clarification will be effective from the February 2026 return period.
Taxpayers filing GSTR-3B from this period onwards can accordingly utilise CGST and SGST ITC in any order for payment of IGST liability after fully exhausting available IGST ITC.
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