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IGST itc utilization

25 November 2023

As per circular no 98/17/2019 ITC of IGST can be utilize in any manner for pymt of CGST and SGST.

is there any other changes after such circular coz dept issuing notice stating that ITC of IGST is required to be 1st utilize against CGST and balance for SGST.
Considering the same dept is asking to pay SGST in cash.

please guide is there any circular or updation or changes regarding the utilization of IGST ITC.

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4 Replies

Radhey Shyam Jha (Student) (1616 Points)
Replied 25 November 2023

Hey
You can refer to ITC Rule 88A. This rule has been notified via CT notification no. 16/2019 dated 29.03.2019.

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sabyasachi mukherjee (27574 Points)
Replied 26 November 2023

Igst and itc utilization . this circular is since beginning.

Suresh Kumar (Account) (403 Points)
Replied 26 November 2023

Your GST notice period may be prior to 23.09.2019 .

Prior to 23.09.2019 - ITC utilization is as "The newly inserted Section 49A of the CGST 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 tax liability. Further, as per the provisions of section 49 of the CGST Act, credit of Integrated tax has to be utilized first for payment of Integrated tax, then Central tax and then State tax in that order mandatorily. This led to a situation, in certain cases, where a taxpayer has to discharge his tax liability on account of one type of tax (say State tax) through electronic cash ledger, while the input tax credit on account of other type of tax (say Central tax) remains un-utilized in electronic credit ledger.

After 23.09.2019 - ITC utilization is as - The newly inserted rule 88A in the CGST Rules allows utilization of input tax credit of Integrated tax towards the payment of Central tax and State tax, or as the case may be, Union territory 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 / Union territory tax can be utilized. It is clarified that after the insertion of the said rule

Nagaraj pujari (2 Points)
Replied 27 November 2023

As per the Circular No: 98/17/2019 dated 23 April 2019, it has been clarified that- As per the provisions of Section 49 of the CGST Act, credit of integrated tax has to be utilised first for payment of integrated tax, then Central tax and then State tax, in that order mandatorily.