Major Amendments made in GST Amendment Acts, 2018 enforced w.e.f. February 01, 2019*
New Provision: Section 49A inserted in CGST Act, 2017 The input tax credit (ITC) 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 been utilised fully towards such payment.
An Example:
CGST Liability: ₹ 20,000
Available Input Tax Credit:
- CGST Input: ₹ 7,000
- SGST Input: ₹ 2,000
- IGST Input: ₹ 12,000
Order of Set Off:
- 1. IGST: ₹12,000
- 2. CGST: ₹ 7,000
- 3. Cash: ₹ 1,000
Refer Complete Article in ICSI GST Newsletter March 2019 Click here