Input Tax credit as credited in Electronic Credit ledger can be utilized for

The correct answer is D. Payment of Taxes.

Input tax credit is a tax credit that is available to businesses that purchase goods or services that are used in the course of their business. The credit can be used to offset the amount of output tax that the business is liable to pay.

Input tax credit can be utilized for payment of taxes, including central taxes, state taxes, and local taxes. The credit can also be used for payment of interest on taxes, but it cannot be used for payment of penalties or fines.

Here is a brief explanation of each option:

• Option A: Payment of Interest. Input tax credit cannot be used for payment of interest on taxes. This is because interest is not a tax, and it is not considered to be a cost of doing business.
• Option B: Payment of Penalty. Input tax credit cannot be used for payment of penalties. This is because penalties are a form of punishment, and they are not considered to be a cost of doing business.
• Option C: Payment of Fine. Input tax credit cannot be used for payment of fines. This is because fines are a form of punishment, and they are not considered to be a cost of doing business.
• Option D: Payment of Taxes. Input tax credit can be used for payment of taxes. This is because taxes are a cost of doing business, and they can be offset by the input tax credit.