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

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..... ved from the trade and industry regarding challenges being faced by taxpayers due to bringing into force of section 49A of the Goa Goods and Services Tax Act, 2017 (hereinafter referred to as the Goa GST 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 Goa Goods and Services Tax Rules, 2017 (hereinafter referred to as the Goa GST Rules) in exercise of the powers under Section 49B of the Goa GST Ac .....

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..... 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 Integrated tax to be completely exhausted mandatorily Central tax (V) (IV) Not permitted State tax / Union Territory tax (VII) Not permitted (VI) 5. The following illustration would further amplify the impact of newly inserted rule 88A o .....

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..... GST Act. Therefore, till the new order of utilization as per newly inserted Rule 88A of the Goa GST 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 of the undersigned. (Dipak M. Bandekar) Commissioner of State Tax Note: Similar circular is issued under Central Goods and Services Tax Act, 2017 by the GST Policy Wing, Central Board of Indirect Taxes and Customs, Department of Revenue, Ministry of Finance, GOI, New Delhi vide Circular No. 98/17/2019-GST dated 23/04/2019.
Circular, Trade Notice, Public Notice, Instructionsor Office order .....

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