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GST Tool · Section 49(5) CGST Act

ITC Utilization Optimizer

Enter your IGST, CGST and SGST/UTGST credit balances and output liability. The optimizer applies the mandatory set-off sequence under Section 49(5) and shows the exact cash payable.

Section 49(5) CGST Act 2017 · CGST Amendment Act 2018 (w.e.f. 1 Feb 2019) · Circular No. 98/17/2019-GST

Credit Balances — Electronic Credit Ledger

Output Tax Liability

Mandatory order — not optional. Section 49(5) prescribes a fixed sequence. This is not discretionary — the sequence cannot be altered even if a different order would be more tax-efficient for the taxpayer.

Set-Off Result

Enter values on the left to compute the set-off.

Step-by-Step Set-Off Walkthrough

Enter values above to see the detailed walkthrough.

Section 49(5) — Mandatory Set-Off Rules

Key amendment — CGST Amendment Act 2018 (w.e.f. 1 Feb 2019): Before the amendment, taxpayers had discretion in cross-utilisation. The amendment made the sequence mandatory and added the proviso requiring IGST credit to be fully utilised before any other credit is used to pay IGST. Circular No. 98/17/2019-GST dated 23 April 2019 clarified the sequence.

Unutilised ITC — Refund Eligibility

SituationRefund Available?Section
Zero-rated supplies (exports / SEZ supply without payment of tax)✓ YesSec 54(3)(i)
Inverted duty structure (input rate > output rate)✓ YesSec 54(3)(ii)
Carry-forward ITC (regular domestic supplies)✗ No—
ITC on exempt supplies✗ NoRule 42/43