Clarification in respect of utilization of input tax credit under GST.

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..... to as the HGST (Amendment) Act]. The amended provisions came into effect from 1 st February 2019. 2. Various representations have from the trade and industry regarding challenges being faced by taxpayers due to bringing into force of section 49A of the Haryana Goods and Services Tax Act, 2017 (hereinafter referred to as the HGST Act). The issue has arisen on account of order of utilization of input tax of integrated tax in a particular order, resulting in accumulation of input tax credit for one kind of tax (say State tax) in electronic credit ledger and discharge of liability for the other kind of tax (say Central tax) through electronic cash ledger in certain scenarios. Accordingly, rule 88A was inserted in the Haryana Goods a .....

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..... ax can utilized. It is clarified that after the insertion of the said rule. the order of utilization of input tax credit will be as per the order (of numerals) given below: Input tax Credit on account of Output liability on account of Integrated tax Output liability on account of Central tax Output liability on account of State tax Integrated tax (I) (II) In any order and in any proportion (III) Input tax Credit account of Integrated tax to be completely exhausted mandatorily Central tax .....

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..... Input tax Credit on account of Integrated tax has been completely exhausted Central tax 0 100 - 100 State Tax 0 - 200 0 Total 1000 300 300 100 Option 2: Input tax Credit an account of Discharge of output liability on account of Integrated tax Discharge of output liability on account of Central .....

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