Section 18 IGST Act 2017 – Transfer of input tax credit

By | April 23, 2017
(Last Updated On: July 28, 2017)

Section 18 IGST Act 2017

[ Section 18 IGST Act 2017 Notified w.e.f 01.07.2017 vide  Notification No. 3/2017 – Integrated Tax Dated 28th June, 2017 ]

Section 18 IGST Act 2017 deals with Transfer of input tax credit. and is covered in CHAPTER VIII -APPORTIONMENT OF TAX AND SETTLEMENT OF FUNDS

( Note IGST Act 2017 also known as THE INTEGRATED GOODS AND SERVICES TAX ACT, 2017 received the Assent of the President of India on 12th April 2017. This is an Act to make a provision for levy and collection of tax on inter-State supply of goods or services or both by the Central Government and for matters connected therewith or incidental thereto.)

Transfer of input tax credit.

[ Refer  Note 1 also ]

18. On utilisation of credit of integrated tax availed under this Act for payment of,––

(a) central tax in accordance with the provisions of sub-section (5) of section 49 of the Central Goods and Services Tax Act, the amount collected as integrated tax shall stand reduced by an amount equal to the credit so utilised and the Central Government shall transfer an amount equal to the amount so reduced from the integrated tax account to the central tax account in such manner and within such time as may be prescribed;

(b) Union territory tax in accordance with the provisions of Section 9 of the Union Territory Goods and Services Tax Act, the amount collected as integrated tax shall stand reduced by an amount equal to the credit so utilised and the Central Government shall transfer an amount equal to the amount so reduced from the integrated tax account to the Union territory tax account in such manner and within such time as may be prescribed;

(c) State tax in accordance with the provisions of the respective State Goods and Services Tax Act, the amount collected as integrated tax shall stand reduced by an amount equal to the credit so utilised and shall be apportioned to the appropriate State Government and the Central Government shall transfer the amount so apportioned to the account of the appropriate State Government in such manner and within such time as may be prescribed.

Explanation.––For the purposes of this Chapter, “appropriate State” in relation to a taxable person, means the State or Union territory where he is registered or is liable to be registered under the provisions of the Central Goods and Services Tax Act.


Note 1 GST Settlement of funds Rules 2017 Notification Dated 27th July, 2017


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3 thoughts on “Section 18 IGST Act 2017 – Transfer of input tax credit

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