TaxTMI 
TaxTMI 
Section 20 provides that credit of integrated tax be distributed as "integrated tax or central tax". However, rule 39 of CGST Rules provides that "input tax credit on account of integrated tax shall be distributed as input tax credit of integrated tax to every recipient.".
Discripency in provision of Act and Rule
Provision of ISD as per Act and Rules
12 Feb 2025 
2 Replies 
1662 Views Asked by
Input tax credit distribution: allocate IGST as IGST under Rule 39 to avoid unnecessary litigation.
Apparent conflict exists where the Act allows interchangeable distribution of central tax and integrated tax credits, while the Rule mandates distribution of IGST credit as IGST. Because recipient branches can utilise IGST credit for IGST, CGST, or SGST, the recommended practice is to distribute and document IGST as IGST under the Rule to avoid litigation. (AI Summary)
Apparent conflict exists where the Act allows interchangeable distribution of central tax and integrated tax credits, while the Rule mandates distribution of IGST credit as IGST. Because recipient branches can utilise IGST credit for IGST, CGST, or SGST, the recommended practice is to distribute and document IGST as IGST under the Rule to avoid litigation. (AI Summary)