Difference Between "Input Tax Credit Availed" and "Input Tax Credit Utilized"

What is the difference Between "Input Tax Credit Availed" and "Input Tax Credit Utilized"?

Ans:-

• When you pay GST(Central/State/Integrated) on your inputs/input services/capital goods, in the books you debit GST input(Input tax credit) and recognize it as a current asset. In the GST return you show it under Eligible ITC which then is available in the Electronic Credit Ledger for utilization. This is Availment of ITC.

• While when you have GST output liability then you can utilize the ITC as availed above for making payment of the output liability of GST. This is Utilization of ITC.