Chapter X (Sections 49-53) of the Central Goods and Services Tax (CGST) Act, 2017 deals with provisions related to Payment of Tax. Section 53 of Central Goods and Services Tax Act, 2017 (12 of 2017) provides for transfer of input tax credit under CGST Act 2017.
Recently, we have discussed in detail section 52 (i.e. Collection of tax at source) of CGST Act 2017. Today, we learn the provisions of section 53 of the CGST Act 2017. Complete Details of CGST Section 53 – Transfer of input tax credit. You may CLICK HERE to download list of all sections of CGST Act 2017 in PDF format.
Notes on Section 53 of CGST Act 2017
Section 53 of CGST Act 2017 shall come into force on 01.07.2017 vide Notification No. 9/2017 – Central Tax, G.S.R. 658(E), dated 28.06.2017. In this note, you will learn detail of the provisions of section 53 of CGST Act 2017 read with Central GST Rules 2017.
On utilisation of input tax credit availed under this Act 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, 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.