Question

The CGST liability is first extinguish in which?

Answer 1

the CGST liability is fira

Answer 2

CGST liability can be extinguished by first utilizing ITC standing under CGST and then under IGST.

Explanation:

• The full form of ITC is an input tax credit. The input here refers to the goods apart from the capital goods that are to be used by the company during their business.  

• The taxes that are paid on the supply of inputs, capital and services are referred to as the input taxes.  

• The taxes involved are the Integrated GST, Central GST, State GST or Union GST.  

• The company using the input of these services can deduct the ‘amount of tax paid’ on inputs or ‘input services against the tax’ on their output.