9911796707
TMI BlogClarification in respect of utilization of input tax credit under GSTX X X X Extracts X X X X X X X X Extracts X X X X ..... o effect from 1st February 2019. 2. Various representations have been received from the trade and industry regarding challenges being faced by taxpayers due to bringing into force of section 49A of the West Bengal Goods and Services Tax Act, 2017 (hereinafter referred to as the WBGST Act). The issue has arisen on account of order of utilization of input tax credit 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 West Bengal Goods and Services Tax Rules, 2017 (hereinaft ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Central tax or State / Union territory tax can be 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 / Union Territory tax Integrated tax (I) (II) In any order and in any proportion (III) Input tax Credit on account of Int ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax Discharge of output liability on account of State tax / Union Territory tax Balance of Input Tax Credit Integrated tax 1000 200 100 0 Input tax Credit on account of Integrated tax has been completely exhausted Central tax 0 100 - 100 State tax / Union territory tax 0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6. Presently, the common portal supports the order of utilization of input tax credit in accordance with the provisions before implementation of the provisions of section 3 of the West Bengal Act XXIV of 2018 i.e. pre-insertion of Section 49A and Section 49B of the WBGST Act. Therefore, till the new order of utilization as per newly inserted Rule 88A of the WBGST Rules is implemented on the common portal, taxpayers may continue to utilize their input tax credit as per the functionality available on the common portal. 8. Difficulty, if any, in the implementation of this Circular may be brought to the notice of the Commissioner. 9. This circular shall be deemed to have come into force with effect from 23.04.2019. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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