TMI BlogClarification in respect of utilization of input tax credit under GSTX X X X Extracts X X X X X X X X Extracts X X X X ..... Tax (Amendment) Act, 2018 [hereinafter referred to as the KGST (Amendment) Act]. The amended provisions came into effect from 1 st February 2019. 2. Various representations have been received from the trade and industry regarding challenges being faced by taxpayers due to bringing into force of section 49A of the Karnataka Goods and Services Tax Act, 2017 (hereinafter referred to as the KGST Act). The issue has arisen on account of order of utilization of input tax credit of Integrated tax in a particular order, resulting in accumulation of input tax credit for one kind of tax (say State tax) in electronic credit ledger and discharge of liability for the other kind of tax (say Central tax) through electronic cash ledger in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntegrated tax is completely exhausted first before the input tax credit on account of Central tax or State / State tax can be utilized. It is clarified that after the insertion of the said rule, the order of utilization of input tax credit will be as per the order (of numerals) given below: Input tax Credit on account of Output liability on account of Integrated tax Output liability on account of Central tax Output liability on account of State tax / Union Territory tax Integrated tax (I) (II) In any order and in any proportion ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntegrated tax Discharge of output liability on account of Central tax Discharge of output liability on account of State tax / Union Territory tax Balance of Input Tax Credit Integrated tax 1000 200 100 0 Input tax Credit on account of Integrated tax has been completely exhausted Central tax 0 100 - 100 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 300 300 100 6. Presently, the common portal supports the order of utilization of input tax credit in accordance with the provisions before implementation of the provisions of the KGST (Amendment) Act i.e. pre-insertion of Section 49A and Section 49B of the KGST Act. Therefore, till the new order of utilization as per newly inserted Rule 88A of the KGS T Rules is implemented on the common portal, taxpayers may continue to utilize their input tax credit as per the functionality available on the common portal. 7. This circular is clarificatory in nature and cannot be made use of for interpretation of provisions of law. If any member ..... X X X X Extracts X X X X X X X X Extracts X X X X
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