Utilisation of integrated tax credit: exhaust integrated credit before using central or state credits, altering GST payment order. The circular clarifies that input tax credit attributable to Integrated tax must be fully exhausted before any Central tax or State/Union territory tax credit can be utilised; after exhaustion, Integrated tax credit may be applied towards Central and State/UT liabilities in any order and proportion. It explains that this change responds to trade representations about imbalanced credit accumulation, provides an application matrix and illustrative allocations, and advises taxpayers that the common portal currently follows the pre-amendment order until updated, inviting implementation difficulty reports.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Utilisation of integrated tax credit: exhaust integrated credit before using central or state credits, altering GST payment order.
The circular clarifies that input tax credit attributable to Integrated tax must be fully exhausted before any Central tax or State/Union territory tax credit can be utilised; after exhaustion, Integrated tax credit may be applied towards Central and State/UT liabilities in any order and proportion. It explains that this change responds to trade representations about imbalanced credit accumulation, provides an application matrix and illustrative allocations, and advises taxpayers that the common portal currently follows the pre-amendment order until updated, inviting implementation difficulty reports.
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