Utilisation of Input Tax Credit – Section 49A & 49B read with Rule 88A of CGST ACT as clarified vide Circular No. 98/17/2019-GST Dated 23rd April 2019–
The new order of set off is resulting in blockage of ITC of SGST & CGST, resulting in payment of taxes by taxpayers.
|Description||Tax Payable (₹)||Paid through ITC||Tax/ Cess Payable in Cash (₹)|
|Integrated Tax (₹)||Central Tax (₹)||State/UT Tax (₹)||Cess (₹)|
|Other than reverse charge|
|State/ UT Tax||103,802||–||95,564||8,238|
To Curve This – The new order of ITC utilization rule 88A is brought vide Notification no 16/2019 dated 29-03-2019 made effective from the 1st April 2019.
Meanwhile if ultimate tax (after taking the IGST input to pay CGST liability) is available to carry forward then we can utilize the IGST Input in proportionate basis.
(Republished with amendments)