CGST Rule 88A of Central Goods and Services Tax Rules, 2017 – Order of utilization of input tax credit

The Central Goods and Services Tax Act, 2017

The Central Goods and Services Tax Rules, 2017

Chapter-IX Payment of Tax

Rule 88A: Order of utilization of input tax credit.

¹[88A. Input tax credit on account of integrated tax shall first be utilised towards payment of integrated tax, and the amount remaining, if any, may be utilised towards the payment of central tax and State tax or Union territory tax, as the case may be, in any order:

Provided that 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 utilised fully.]

References

Amendments:

1. Inserted by Central Goods and Services Tax (Second Amendment) Rules, 2019 vide Notification No. 16/2019-Central Tax dated 29th March, 2019, w.e.f. 29.03.2019.

Circulars:

c1. Utilization of Input Tax Credit (ITC) post insertion of the Rule 88A of the CGST Rules [Circular No. 98/17/2019-GST dated 23.04.2019]

c2. Any payment towards output tax, whether self-assessed in the return or payable as a consequence of any proceeding instituted under the provisions of GST Laws, can be made by utilization of the amount available in the electronic credit ledger of a registered person. However, as output tax does not include tax payable under reverse charge mechanism, implying thereby that the electronic credit ledger cannot be used for making payment of any tax which is payable under reverse charge mechanism.[Circular No. 172/04/2022-GST dated 06.07.2022]