Chapter X - Payment of tax
Section 53
Section 53: Transfer of input tax credit
Section 53 provides for inter-governmental transfer when CGST credit is used to pay IGST dues.
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This article is for general information. Refer to the Central Goods and Services Tax Act, 2017 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
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.
Introduction
This provision reconciles government accounts after a registered person uses central-tax credit to discharge IGST under section 49(5). It is not an extra credit claim for the taxpayer.
Key takeaways
Trigger
CGST credit must have been used to pay tax dues under the IGST Act in accordance with section 49(5).
Return evidence
The use must be reflected in a valid return under section 39(1).
Government transfer
The central-tax collection is reduced by that amount and the Central Government transfers the equal amount from the central-tax account to the integrated-tax account in the prescribed manner and time.
Trigger
CGST credit must have been used to pay tax dues under the IGST Act in accordance with section 49(5).
Return evidence
The use must be reflected in a valid return under section 39(1).
Government transfer
The central-tax collection is reduced by that amount and the Central Government transfers the equal amount from the central-tax account to the integrated-tax account in the prescribed manner and time.
Practical checklist
Do
- Confirm the section 49 credit offset is permitted.
- Reconcile the offset to the valid section 39(1) return.
- Do not record section 53 as a second taxpayer credit.
Avoid
- Use an old notification or portal date without checking the relevant tax period.
Frequently asked questions
Does section 53 grant new ITC to the taxpayer?
No. It provides a government-account transfer corresponding to ITC already used against IGST.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026