Utilisation of input tax credit: IGST credit must be exhausted first, reshaping GST credit application and cashflow effects.
Insertion of 49A and 49B requires that IGST input tax credit be exhausted before credits attributable to central, State or Union territory taxes may be utilised; 49B further authorises the government to prescribe the order and manner of ITC utilisation, while prior prohibitions on certain cross utilisation between central and State/UT credits continue to apply. The change may cause accumulation of CGST/SGST/UTGST credits and related cash flow impact. (AI Summary)