Clarification in respect of utilization of input tax credit under GST

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..... . Subject: Clarification in respect of utilization of input tax credit under GST - Reg. Ref: CBIC Circular No. 98/17/2019-GST dated , 23rd April, 2019 Section 49 was amended and Section 49A and Section 49B were inserted vide Bihar Goods and Services Tax (Amendment) Act, 2018 [hereinafter referred to as the BGST (Amendment) Act]. The amended provisions came into effect from I st February 2019. .....

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..... d 9th April 2019. In order to ensure uniformity in the implementation of the provisions of the law, the Commissioner, in exercise of its powers conferred by section 168 (1) of the BGST Act, hereby clarifies the issues raised as below. 3. The newly inserted Section 49A of the BGST Act provides that the input tax credit of Integrated tax has to be utilized completely before input tax credit of Cent .....

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..... dition 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, 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 lia .....

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..... ount of Discharge of output liability on account of Integrated tax Discharge of output liability on account of Central 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 .....

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..... the new order of utilization as per newly inserted Rule 88A of the BGST 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. Difficulty, if any, in the implementation of this Circular may be brought to the notice. (Dr. Pratima) Commissioner State Tax-cum-Secretary, Bihar, Patna
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