GENERAL22 Sept 2026
Industry seeks ITC use for reverse-charge GST ahead of Oct 7 Council meet
Businesses want the GST Council to allow accumulated input tax credit (ITC) to pay reverse-charge GST dues. Today these must be paid in cash, which blocks working capital. This mainly affects firms holding large unused ITC in their credit ledgers. The demand comes ahead of the Council's October 7 meeting. For now, keep paying reverse-charge tax in cash and watch your ITC balance.
Key Statutory Highlights
- Businesses want the GST Council to allow accumulated input tax credit to be used for paying reverse-charge GST liabilities.
- Industry says the cash-payment requirement for reverse-charge GST blocks working capital.
- The request comes ahead of the GST Council meeting on October 7, and firms with large unused ITC in their credit ledgers feel the burden most.
Actionable Advice for Taxpayers / Founders:Keep paying reverse-charge GST in cash for now, and review your electronic credit ledger so unused input tax credit does not sit idle. Treat the ITC-for-reverse-charge option as a proposal only until the GST Council decides.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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