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 ..... ubject, which is reproduced hereunder: 2. Section 49 was amended and Section 49A and Section 49B were inserted vide Central Goods and Services Tax (Amendment) Act, 2018 [hereinafter referred to as the CGST (Amendment) Act]. The amended provisions came into effect from 1 st February 2019. 3. 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 Central Goods and Services Tax Act, 2017 (hereinafter referred to as the CGST 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 ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ated tax towards the payment of Central tax and State tax, or as the case may 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 Sta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... scharge of output liability on account of Integrated tax Discharge of output liability on account of Central tax Discharge Of Output liability on account of State taxi 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 Sta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of input tax credit in accordance with the provisions before implementation of the provisions of the CGST (Amendment) Act i.e. pre-insertion of Section 49A and Section 49B of the CGST Act. Therefore, till the new order of utilization as per newly inserted Rule 88A of the CGST 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. 8. All the Deputy/Assistant Commissioners are requested to bring the contents of the Trade Notice to the notice of all the officers working under their charge and the taxpayers falling under their respective jurisdiction. 9. The Trade Industry Association/Chambers of Commerce are also ..... X X X X Extracts X X X X X X X X Extracts X X X X
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