Background
Initially when the GST Amendment Act 2018 was implemented w.e.f. 1st Feb 2019, one of the highlighted issue was newly inserted Sec. 49A. Which had changed the order of utilization of the IGST credit.
Later on, Rule 88A was inserted to nullify the adverse effect of Additional Cash Blockage of Section 49A which allowed to the utilization of IGST credit first against IGST liability and then in any order against CGST liability or SGST liability.
The Circular 98/17/2019 clarifies the following two things:
1. IGST credit, after utilization against IGST Liability, may be utilized in any order, even in part, against CGST liability and SGST liability.
2. The portal currently supports the pre-amendment order of IGST Credit utilization, i.e. credit utilization before Section 49A and 49B. The taxpayer may continue to utilize the Input tax credit in accordance with the functionality available on Portal.
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