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Deferment of section 49A

18 March 2019

As per the new notn.13/2019 DTD. 7th March 2019, taxes are to be discharged as per section 49, Does this mean the new offset mechanism as per Section 49A is deferred??

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15 Replies

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 18 March 2019

Yes....correct & portal is also setting off the liability as Section 49 of CGST Act only.

Deferred till 30/6/19

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Nitish Agrawal (CA) (810 Points)
Replied 19 March 2019

Originally posted by : Pankaj Rawat
	Yes....correct & portal is also setting off the liability as Section 49 of CGST Act only.Deferred till 30/6/19

Sir any source for the same?

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 21 March 2019

@ Nitesh Aggarwal

Refer para 2 of Notification 13/2019 CT Dt. 7/3/19

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CA Akshay Hiregange (Partner - Audit & Assistance) (4515 Points)
Replied 21 March 2019

Although i do agree that portal is auto-populating the previous set-off procedure, this does not mean the new set-off procedure as per Section 49A can be implemented manually. It is still suggested to await government response in this regard.

Notification 13/2019 cannot override the Act, i.e. section 49A, may not be the appropriate provision in law to follow the old method.

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 22 March 2019

BUT ITS THERE IN AMENDMENT ACT 31 OF 2018 DT. 29.8.18 , THE PROVISION OF ACT WILL BE EFFECTIVE ONLY WHEN NOTIFY BY COUNCIL BY ISSUING NOTIFICATION

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CA Akshay Hiregange (Partner - Audit & Assistance) (4515 Points)
Replied 22 March 2019

Please refer Notification 02/2019 - CT dated 29th January 2019. CGST Amendment Act is effective from 1st February 2019 onwards.

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 23 March 2019

Yes you are correct , it's being effective by Notification 2/2019 CT & After that the Notification 13/2019 CT dt. 7.3.19 was issued stating that The Set-off Mechanism will done as per Section 49 only (the old rule)

Nitish Agrawal (CA) (810 Points)
Replied 24 March 2019

Originally posted by : Pankaj Rawat
	Yes you are correct , it's being effective by Notification 2/2019 CT & After that the Notification 13/2019 CT dt. 7.3.19 was issued stating that The Set-off Mechanism will done as per Section 49 only (the old rule)

Does that means NT 2/2019 gets nullified after NT 13/2019?

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 25 March 2019

Yes ....... ..................

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CA Akshay Hiregange (Partner - Audit & Assistance) (4515 Points)
Replied 26 March 2019

Originally posted by : Nitish Agrawal
	Originally posted by : Pankaj Rawat Yes you are correct , it's being effective by Notification 2/2019 CT & After that the Notification 13/2019 CT dt. 7.3.19 was issued stating that The Set-off Mechanism will done as per Section 49 only (the old rule) Does that means NT 2/2019 gets nullified after NT 13/2019?

NO.

The wordings are general, and does not supress Section 49A. For better perspective, refer notification 34/2018-CT which is a similar circular with similar wordings which was applicable before 49A was introduced.

Although, the new ITC utilisation mechanism has not been updated in the GST portal as yet as the numbers do not auto-populate as such.

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Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 28 March 2019

No

The Notification 34/2018 CT is of Date 10/8/2018 & the Amendment Act 31,2018 released on 29/8/2018.so there is no question of Section 49A .

BUT
2ndly : the provision of Section 49a get effective from 29/1/19 by vide Notification 2/2019 CT , it means the Provision for same be effective but After that Notification 13/2019 CT being Issued dt.7.3.19 & stating set-off will be done as per Section 49 ...... (Not mentioned 49A )

Hence in my view Provision of Section 49 is effective as of today

Note : Query Open for other Views

CA Akshay Hiregange (Partner - Audit & Assistance) (4515 Points)
Replied 28 March 2019

Dear Mr. Pankaj,

I also agree section 49 is effective. But Section 49A is also effective. And it start with notwithsatnding anything other than in Section 49(5)(e) & (f).

There has been no notification clearly stating that section 49A is ineffective. (after the notification which made 49A effective).

The portal is functioning without considering section 49A presently, although there is no reference in law for the same.

Otherwise I agree that we can still go ahead with the old method until the portal makes sure of the same.

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Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 01 April 2019

Dear Sir CA Akshay Ji

Rule 88A is being inserted in regard to Section 49A by Notification 16/2019 CT , Dt.29/3/19.

Hence the same being effective from 1/4/2019

CA Akshay Hiregange (Partner - Audit & Assistance) (4515 Points)
Replied 01 April 2019

Yes, utilisation has been specifically prescribed now in the following manner:

Particulars	IGST ITC	CGST ITC	SGST ITC
IGST output	First	Second	Second
CGST output	Second/Third	After IGST ITC is fully utilised	Restricted
SGST output	Third/Second	Restricted	After IGST ITC is fully utilised