Chapter IV - Payment of tax
Section 10
Section 10: Transfer of input tax credit
Section 10 addresses the Government account transfer when UTGST credit is used to pay IGST. It links the taxpayer’s valid return and statutory credit use to a corresponding transfer from the UTGST account to the IGST account.
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Need advice on Section 10?
This article is for general information. Refer to the Union Territory 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 of Union territory tax 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 of the Central Goods and Services Tax Act, as reflected in the valid return furnished under sub-section (1) of section 39 of the Central Goods and Services Tax Act, the amount collected as Union territory 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 Union territory tax account to the integrated tax account in such manner and within such time as may be prescribed.
Key takeaways
Trigger
UTGST credit must have been used for IGST dues under the applicable CGST credit provision and reflected in a valid return.
Government accounting
The UTGST collection account is reduced by the credit used, and the Central Government transfers the same amount to the IGST account.
Prescribed timing
The transfer manner and timing are prescribed; Section 10 does not give the taxpayer a separate cash refund.
Trigger
UTGST credit must have been used for IGST dues under the applicable CGST credit provision and reflected in a valid return.
Government accounting
The UTGST collection account is reduced by the credit used, and the Central Government transfers the same amount to the IGST account.
Prescribed timing
The transfer manner and timing are prescribed; Section 10 does not give the taxpayer a separate cash refund.
Practical checklist
Do
- Verify that UTGST credit used against IGST appears in the valid return.
- Reconcile ledger usage by tax head.
- Do not treat the Government account transfer as a second taxpayer credit or refund.
Frequently asked questions
Does Section 10 grant the taxpayer an additional refund?
No. It provides for an inter-account transfer after valid credit utilisation.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026