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

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.... Dated: 26.04.2019 Circular No. 68/2019-TNGST (RC No.26/2019/A1/Taxation) Sub: Clarification in respect of utilization of input tax credit under GST. Section 49 was amended and Section 49A and Section 49B were inserted vide Tamil Nadu Goods and Services Tax (Amendment) Act, 2019 [hereinafter referred to as the TNGST (Amendment) Act]. The amended provisions came into effect from 1^st F....

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....B of the TNGST Act vide notification issued in G.O.Ms.No.50, CT and Registration (B1) Department, dated 29-3- 2019. In order to ensure uniformity in the implementation of the provisions of the law, the Commissioner, in exercise of its powers conferred by section 168 of the TNGST Act, hereby clarifies the issues raised as below. 3. The newly inserted Section 49A of the TNGST Act provides that th....

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....yment of Central tax and State tax, in any order subject to the condition that the entire input tax credit on account of Integrated tax is completely exhausted first before the input tax credit on account of Central tax or State 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 b....

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....300 200 State tax / Union Territory tax 300 200 Total 1600 1700 Option 1 : 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 ....