CBIC seeks to clarify the manner of utilization of input tax credit post insertion of the rule 88A of the CGST Rules

Circular No.ES/22/2019-20                                                            24th April, 2019        

To: Members of the Council                 

Sub.: CBIC seeks to clarify the manner of utilization of input tax credit post insertion of the rule 88A of the CGST Rules.

Dear Member,

We would like to inform you that CBIC has issued Circular No. 98/17/2019-GST dated 23rd April, 2019 clarifying issues relating to Order of Utilization of Input Tax Credit (ITC) under GST, specially in view of accumulation of unutilized ITC of Central tax/ State tax in the Electronic Cash Ledger due to utilisation of IGST first as prescribed under newly enacted Sections 49A (Utilisation of input tax credit subject to certain conditions) & 49B (Order of utilisation of input tax credit) of the CGST Act, 2017 w.e.f. 1st February, 2019.

For more information, members may kindly refer the above Circular No. 98/17/2019-GST.

Thanking you,             

Yours faithfully,

S. BALARAJU
EXECUTIVE DIRECTOR