Clarification in respect of utilization of input tax credit under GST

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..... nded and section 49A and section 49B were inserted vide Jharkhand Goods and Services Tax (Amendment) Act, 2018 (hereinafter referred to as the "SGST (Amendment) Act)"). The amended provisions came into 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 .....

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..... n exercise of its powers conferred by section 168(1) of the JGST Act, hereby clarifies the issues raised as below. 3. The newly inserted section 49A of the JGST Act provides that the input tax credit of Integrated tax has to be utilized completely before input tax credit of Central tax/State tax can be utilized for discharge of any tax liability. Further, as per the provisions of section 49 of th .....

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..... t 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 liability on account of Integrated tax Output liability on account of Central tax Output liability on account of Sta .....

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..... 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 - 200 0 Total 1000 300 300 100 Option 2 : Input tax credit on account of Discharge of output liability on .....

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..... s 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 Commissioner. Hindi version would follow. Secretary-cum-Commissioner, Commercial Taxes

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