Section 49(5) which is in force from 1-7-2017 provides for utilization of IGST ITC, in full for set off against output tax and then towards CGST and SGST in that order.
Section 49B which came into force with effect from 1-2-2019 empowers the government to prescribe order and manner of utilization of ITC
Rule 88A which is effective from 29-3-2019 provides for set off of ITC in “Any manner” subject to condition that IGST ITC must be first fully utilized .
It is settled law that Rules cannot be override the Act.
I request expert’s opinion on above issue.
Debate on Rule 88A's impact on Input Tax Credit under GST: Does it conflict with Section 49B or benefit taxpayers? A discussion on a forum revolves around the utilization of Input Tax Credit (ITC) under the Goods and Services Tax (GST) framework. The original query raises concerns about Rule 88A potentially overriding Section 49B of the GST Act. Participants debate whether Rule 88A, which mandates the full utilization of IGST credit before CGST and SGST, conflicts with the Act. One participant argues that Rule 88A does not exceed the provisions of Section 49B and is beneficial to taxpayers. Another participant highlights potential issues with CGST credit accumulation. The consensus suggests Rule 88A aligns with the Act, offering no unauthorized benefits. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
