TaxTMI 
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TaxTMI 
GST ITC Utilisation
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....ST ITC Utilisation<br> Query (Issue) Started By: - Ethirajan Parthasarathy Dated:- 9-12-2022 Last Reply Date:- 11-12-2022 Goods and Services Tax - GST<br>Got 5 Replies<br>GST<br>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....
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....-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. Reply By Shilpi Jain: The Reply: Agreed that rules cannot ....
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....override the Act. Who is going to challenge this rule though? It is a beneficial rule. Reply By Amit Agrawal: The Reply: Dear Shri Ethirajan Parthasarathy Ji, Can you please explain how Rule 88A is overriding Section 49B? Dear Ms. Shilpi Jain Mam, Can you please explain how Rule 88A allows 'additional benefits' to a tax-payer, as compared to relevant provisions of the Act? In other w....
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....ords, just hypothetically speaking, what can be grievances from Tax Dept's side to claim that this rule 88A overrides relevant provisions and more importantly, how a tax-paper is actually getting those additional benefits which are NOT envisioned in law? I am just trying to understand various facets involved to the issue raised. Thanks Reply By Shilpi Jain: The Reply: If IGST credit has to....
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.... be first used towards CGST and only then SGST liability in some cases there would arise a situation of accumulation of CGST credit. In such a scenario if assessee has C+SGST outward liability, he may have to pay vide cash ledger in spite of excess credit lying in CGST credit ledger. Reply By Shilpi Jain: The Reply: Pls have a look at the article in the below link https://www.taxmanagementindi....
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....a.com/visitor/detail_article.asp?ArticleID=9456 Reply By Amit Agrawal: The Reply: My views - on the subject query referred here - is as under: Rule 88A does not exceed the provisions of Section 49B. Hence, any challenge to such rule even by Dept. (hypothetically speaking) - on the ground that such rule override the Act - will fail. Even though Rule 88A is a beneficial provision to a tax-payer,....
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.... it is perfectly allowed as per provision of the Act in my view. And tax-paper is not getting any additional benefits which are not envisioned in law I have gone through the referred article, Ms. Shilpi Jain Mam. And I find nothing contrary to above proposition in said article. Please correct me if I misunderstood anything. These are ex facie views of mine and the same should not be construed as....
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.... professional advice / suggestion.<br> Discussion Forum - Knowledge Sharing ....