What is Input Tax Credit (ITC) in GST?

ITC is the GST paid on purchases of goods and services used for making taxable supplies. Businesses can offset ITC against their output tax liability. For example, if you paid ₹18,000 GST on purchases and owe ₹30,000 on sales, you only pay ₹12,000 cash. ITC must be claimed within the time limit specified in the CGST Act.

In what order is ITC set off against GST liability?

ITC utilisation order as per CGST rules: (1) IGST ITC first against IGST, then against CGST, then SGST; (2) CGST ITC against CGST only; (3) SGST ITC against SGST only. CGST ITC cannot be used for SGST and vice versa (after IGST is exhausted). This cross-utilisation rule is enforced automatically on the GST portal.

What is the due date for GSTR-3B?

GSTR-3B is due on the 20th of the following month for monthly filers. Under QRMP scheme (turnover up to ₹5 crore), GSTR-3B is due on 22nd or 24th depending on state. Late filing attracts ₹50/day penalty (₹25 CGST + ₹25 SGST), capped at ₹10,000. NIL return late fee: ₹20/day.

GSTR-3B Return Calculator India 2026

Q: What is GSTR-3B and who must file it?

GSTR-3B is the monthly self-assessment return filed by all regular GST-registered taxpayers by the 20th of the following month. It contains output tax on sales, input tax credit (ITC) available, and net tax payable. Taxpayers with turnover above ₹5 crore must file monthly; others can opt for quarterly QRMP scheme.

Q: What is GSTR-3B nil filing?

A NIL GSTR-3B is filed when there are no taxable outward supplies, no ITC to claim, and no tax liability for the period. Even with no transactions, a NIL return must be filed to avoid late fees. You can file NIL GSTR-3B via SMS (send NIL to 14409 from registered mobile) without logging in to the portal.

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GSTR-3B Net Tax Payable Calculator

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📤 Output Tax — Tax Collected on Sales

Total Taxable Sales (₹)

IGST Collected on Sales (₹)

CGST Collected on Sales (₹)

SGST/UTGST Collected on Sales (₹)

📥 Input Tax Credit (ITC) Available

IGST ITC Available (₹)

CGST ITC Available (₹)

SGST/UTGST ITC Available (₹)

Net GST Payable (Cash)

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Total Liability ₹0

Total ITC ₹0

IGST Payable (Cash)₹0

CGST Payable (Cash)₹0

SGST/UTGST Payable (Cash)₹0

ITC Refund Eligibility₹0

Total Output Tax (Sales)—

Total ITC Available—

Net GST to Pay via Cash—

GSTR-3B Due Date20th of following month

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ITC Utilisation Order in GSTR-3B

IGST ITC

First → IGST
Then → CGST
Then → SGST

CGST ITC

Only → CGST
(Cannot set off SGST)

SGST ITC

Only → SGST
(Cannot set off CGST)

⚠️ Important: CGST and SGST ITC cannot be cross-utilized against each other (except via IGST ITC). Violations can result in notices from GST authorities.

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"Our accounts team uses this every month to verify GSTR-3B before filing. The ITC cross-utilization rules are explained clearly — no more errors."

Mahesh Iyer — Finance head, Chennai

★★★★★

"Discovered my ITC was exceeding output tax — eligible for refund I didn't know about. ClearlyComply's CA team helped file the refund claim."

Anita Shah — Exporter, Surat

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"Simple, clean interface. Just enter the figures from your purchase register and sales register and instantly know what to pay. Exactly what I needed."

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Frequently Asked Questions

What is GSTR-3B and who must file it?+

GSTR-3B is the monthly self-assessment return for all regular GST-registered taxpayers. It must be filed by the 20th of the following month. Taxpayers with turnover above ₹5 crore file monthly; others can opt for quarterly QRMP scheme. Even NIL returns must be filed to avoid late fees.

What is Input Tax Credit (ITC)?+

ITC is the GST paid on purchases that can be offset against output tax on sales. For example: ₹18,000 GST paid on purchases → reduces your ₹30,000 output tax liability → you only pay ₹12,000 cash. ITC must be claimed within the time limits in CGST Act and verified against supplier's GSTR-1.

In what order is ITC utilised against GST liability?+

IGST ITC first → against IGST, then CGST, then SGST. CGST ITC → only against CGST. SGST ITC → only against SGST. CGST and SGST ITC cannot cross-offset each other. This rule is enforced on the GST portal. Any unused IGST ITC helps both CGST and SGST liabilities.

What is GSTR-3B nil filing?+

NIL GSTR-3B is filed when there are no taxable sales, no ITC, and no tax for the month. File via SMS: send "NIL 3B [GSTIN] [Period] [Year]" to 14409 from the registered mobile — no portal login needed. NIL return must still be filed by the due date, else ₹20/day late fee applies.

Can excess ITC be claimed as a refund?+

Yes. If ITC exceeds output tax, you may be eligible for GST refund under CGST Rule 89 — particularly for exporters (zero-rated supplies), inverted duty structure (purchases taxed higher than sales), or excess ITC due to exempt supplies. File refund claim via GST portal with supporting invoices.

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ITC Utilisation Order in GSTR-3B

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