Input tax credit utilization: Integrated credit must be exhausted before using Central or State credits; portal process remains temporarily unchanged Input tax credit on account of Integrated tax must be completely exhausted before any credit of Central tax or State/Union Territory tax can be utilised; the new rule allows Integrated tax credit to be applied toward Central and State liabilities in any order and proportion only after Integrated credit is fully depleted. The circular explains the resulting order of utilisation, provides illustrative allocations, and advises that pending updates to the common portal taxpayers may continue to use current portal functionality.
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Provisions expressly mentioned in the judgment/order text.
Input tax credit utilization: Integrated credit must be exhausted before using Central or State credits; portal process remains temporarily unchanged
Input tax credit on account of Integrated tax must be completely exhausted before any credit of Central tax or State/Union Territory tax can be utilised; the new rule allows Integrated tax credit to be applied toward Central and State liabilities in any order and proportion only after Integrated credit is fully depleted. The circular explains the resulting order of utilisation, provides illustrative allocations, and advises that pending updates to the common portal taxpayers may continue to use current portal functionality.
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