Chapter IV - Payment of tax
Section 9
Section 9: Payment of tax and input tax credit
Section 9 sets the basic cross-utilisation boundaries for integrated and Union territory input tax credit. Sections 9A and 9B, and the operative credit rules, must also be read when deciding actual ledger use.
On this page
Need advice on Section 9?
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.
Key takeaways
Integrated credit
Integrated-tax credit is used first for integrated tax; any balance may be used for central tax and then Union territory tax in the statutory order.
Union territory credit
UTGST credit is used for UTGST first; any remaining credit can be used for integrated tax subject to the statutory condition concerning central-tax credit.
No UTGST-to-CGST set-off
Section 9(c) prohibits using UTGST credit to pay central tax.
Integrated credit
Integrated-tax credit is used first for integrated tax; any balance may be used for central tax and then Union territory tax in the statutory order.
Union territory credit
UTGST credit is used for UTGST first; any remaining credit can be used for integrated tax subject to the statutory condition concerning central-tax credit.
No UTGST-to-CGST set-off
Section 9(c) prohibits using UTGST credit to pay central tax.
Practical checklist
Do
- Reconcile credit ledgers before offsetting output tax.
- Apply Sections 9, 9A and 9B together with the operative CGST credit-utilisation rules.
- Keep a tax-head-wise record of credit application and cash payment.
Frequently asked questions
Can UTGST credit pay CGST?
No. Section 9(c) expressly prohibits that cross-utilisation.
Need help applying this provision to your situation?
Contact BizeneedLast updated 9 October 2026