Clarification in respect of utilization of input tax credit under GST.

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....t tax credit under GST -Reg. Section 49 was amended and Section 49A and Section 49B were inserted vide Gujarat Goods and Services Tax (Amendment) Act, 2018 [hereinafter referred to as the GGST (Amendment) Act]. The amended provisions came into effect from 1^st February 2019. 2. Various representations have been received from the trade and industry regarding challenges being faced by taxpayer....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....provisions of the law, the Chief Commissioner of State Tax, in exercise of its powers conferred by section 168 (1) of the GGST Act, hereby clarifies the issues raised as below. 3. The newly inserted Section 49A of the GGST Act provides that the input tax credit of Integrated tax has to be utilized completely before input tax credit of Central tax / State tax can be utilized for discharge of any....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....count 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 Outp....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Input tax Credit on account of Discharge 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 tax/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 ....