CS Executive · Tax Laws and Practice · Input Tax Credit and Computation of GST Liability
Under section 41(1) of the CGST Act, 2017, the eligible input tax credit availed by a registered person is credited to which account?
The eligible credit, as self-assessed in the person's return, is credited to his electronic credit ledger. This entitlement is subject to prescribed conditions and restrictions. The electronic cash ledger is used for cash deposits, not for availed input tax credit.
- AHis electronic credit ledgerCorrect
- BHis electronic cash ledger
- CHis electronic liability register
- DThe supplier's electronic credit ledger
Explanation
Section 41(1) entitles a registered person, subject to prescribed conditions and restrictions, to avail credit of eligible input tax as self-assessed in his return, and the amount is credited to his electronic credit ledger. The cash ledger holds deposits of tax paid in cash.
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