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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 ..... de and industry regarding challenges being faced by taxpayers due to bringing into force of section 49A of the Nagaland Goods and Services Tax Act, 2017 (hereinafter referred to as the NGST 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 Nagaland Goods and Services Tax Rules, 2017 (hereinafter referred to as the NGST Rules) in exercise of the powers under Section 49B of the NGST Act vide notifica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 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 Integrated tax to be completely exhausted mandatorily Central t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... / 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 - 200 0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x credit in accordance with the provisions before implementation of the provisions of the NGST (Amendment) Act i.e. pre-insertion of Section 49A and Section 49B of the NGST Act. Therefore, till the new order of utilization as per newly inserted Rule 88A of the NGST 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. 7. It is requested that suitable trade notices may be issued to publicize the contents of this circular. 8. Difficulty, if any, in the implementation of this Circular may be brought to the notice of the Board. No. CT/LEG/GST-CR/13/17/1343 (KESONYU YHOME) IAS Commissi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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