TMI BlogClarification in respect of utilization of input tax credit under GST.X X X X Extracts X X X X X X X X Extracts X X X X ..... vide Maharashtra Goods and Services Tax (Amendment) Act, 2018 [hereinafter referred to as the MGST (Amendment) Act]. The amended provisions came into effect from 1st 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 Maharashtra Goods and Services Tax Act, 2017 (hereinafter referred to as the MGST 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) th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be, Union territory tax, in any order subject to the condition that the entire input tax credit on account of Integrated tax is completely exhausted first before the input tax credit on account of Central tax or State / Union territory 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 State tax / Union territory tax 0 - 200 0 Total 1000 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 88A of the MGST 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 hence cannot be made use of interpretation of provisions of the law. Difficulty if any, in this implementation of this Circular may be brought to the notice of the Office of the Commissioner of State Tax, Maharashtra State. Yours faithfully, (Rajiv Jalota) Commissioner of State Tax, Maharashtra State, Mumbai. No. JC (HQ)-1/GST/2019/CBIC Circular(s)/ADM-8 Mumbai, dated 17-05-2019 Trade Circular (GST) No. 33T of 2019. - Circular - Trade Not ..... X X X X Extracts X X X X X X X X Extracts X X X X
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