The Goods and Services Tax Network (GSTN) on February 19, 2026 has announced that taxpayers will be able to utilise Central Goods and Services Tax (CGST) and State Goods and Services Tax (SGST) Input Tax Credit (ITC) in any order for payment of Integrated Goods and Services Tax (IGST) liability, subject to prior full utilisation of available IGST credit.
The new functionality will be made available on the GST portal from the February 2026 tax period onwards.
At present, taxpayers are required to follow a prescribed order for utilisation of input tax credit. With this enhancement, after exhausting IGST credit, taxpayers will gain greater flexibility in adjusting CGST and SGST credits towards IGST liability as per their convenience.
The move is expected to simplify compliance, enhance ease of doing business, and provide improved cash flow management for taxpayers under the Goods and Services Tax (GST) regime.
Taxpayers are advised to take note of the updated functionality and plan their credit utilisation accordingly for returns filed for the February 2026 period and thereafter.
Source from: https://a2ztaxcorp.net/wp-content/uploads/2026/02/GSTN-Portal-X-Update-19.02.2026.pdf
