Earlier we used to take set off of respective heads first like to pay SGST we would first utilise SGST Credit and then if still payable we would utilise IGST Credit. W.e.f. 01.04.2019, it was proposed that IGST Credit be first utilised for paying even SGST OR CGST. So considering you have balance of CGST AND IGST CREDIT, To pay CGST you will first utilise IGST Credit and if still CGST is payable you will utilise CGST Credit.
A new section has been inserted in GST Law Section 49A as below:
“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 utilised fully towards such payment.
You can mark the words *only after the input tax credit available on account of integrated tax has been first been utilised fully towards auch payment* from above newly added section.
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