Now as per CGST Amendment act 2018 Prescribed the New rule for Utilization of ITC as Given in Sec 49A

49A. Notwithstanding anything contained in section 49, the input tax credit on account of central tax, State tax or Union territory tax shall be utilised towards payment of integrated tax, central tax, State tax or Union territory tax, as the case may be, only after the input tax credit available on account of integrated tax has first been utilized fully towards such payment.

Now the confusion arises the CGST Amendment act was made applicable from 1st Feb 2019 but the GST Portal showed the Old rule for utilization of ITC Under Sec 49 rather than 49A

Gst council have now decided to defer the applicability of the new rule, as per Notification No. 13/2019 Central Tax Dated 07.03.2019 Extract

“2. Payment of taxes for the discharge of tax liability as per FORM GSTR-3B.– Every registered person  furnishing the return in FORM GSTR-3B of the said rules shall, subject to the provisions  of section 49 of the said Act, discharge his liability towards tax, interest, penalty, fees or any other amount payable under the said Act by debiting the electronic cash ledger or electronic credit ledger, as the case may be, not later than the last date, as specified in the first paragraph, on which he is required to furnish the said return. “


So as per the above notification, we have to discharge the liability of tax as per the old rule given in Sec 49 of CGST Act, 2018.

Disclaimer- Please read the relevant rules before relying on the above.

Author Bio

Qualification: Student - CA/CS/CMA
Company: MGIRT & Co
Location: Bangalore, Karnataka, IN
Member Since: 05 Sep 2017 | Total Posts: 10
I am Rajat Solanki and Currently Studying CA and I am working at MGIRT & Co. Bangalore View Full Profile

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  1. Rohit Gupta says:

    Dear Rajat,

    Your interpretation is incorrect. There seems to be complete mis-understanding of law. Please delete this article as it is creating confusion.

  2. mukesh parmar says:

    The said notification in first paragraph refers to returns from Apr to June 19. Though 2nd para specifies the way in which tax liability is tobe offset with reference to first para. Hence, it applies to returns from Apr to June 2019. What happens to Feb and March 2019. Can the GST Council clear this doubt. They can just mention the months clearly to clear the doubts. ~ Hope some one can clarify. Thank you.

  3. CA Dipesh Gundesha says:

    From where conclusion is drawn that liability is to be discharged as per old rule? Rule 49A starts with non-obstante clause. And notification you have refered to is for specifying due date of April to June 19 due dates. There seems to be complete mis-understanding of law.

    1. Rajat says:

      Please see the second clause in notification is specifies the sec for discharging of liability and payment of tax , interest .penalty in gstr 3b and the notification has two parts

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October 2020