Payment of tax
UTGST s.9, UTGST Act
Straight from CBIC
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Amendment history
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Payment of tax: IGST credit is used first for IGST, then for CGST or UTGST; UTGST credit goes to UTGST and then to IGST; and CGST credit can never be used to pay UTGST or the other way round.
What this means in practice
The parts that actually decide cases — the things a practitioner checks first.
Utilisation follows the same IGST-first sequence as the CGST Act, read with sections 9A and 9B and Rule 88A.
The exact words of the law
880 characters, uneditedReproduced from the CBIC text. We explain it above — but you should always be able to read it yourself.
Read the full provision+
(a) 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 as the case may be, Union territory tax, in that order;
(b) the Union territory tax shall first be utilised towards payment of Union territory tax and the amount remaining, if any, may be utilised towards payment of integrated tax; 1 [ Provided that the input tax credit on account of Union territory tax shall be utilised towards payment of integrated tax only where the balance of the input tax credit on account of central tax is not available for payment of integrated tax;]
(c) the Union territory tax shall not be utilised towards payment of central tax.
What changed, and when
The amendment trail, newest first — because the version that applies to your case depends on the period.
2019-02-01 · Insertedvide
Inserted vide s. 3 of the Union Territory Goods and Services Tax(Amendment) Act, 2018 w.e.f 1st February, 2019.
Where this comes from
Text reproduced from the Central Board of Indirect Taxes and Customs, as available on 2026-09-05. The explanation and practice notes above are GSTZone’s own, written for this hub. If you spot anything out of date, tell us and we’ll fix it — this hub is checked daily against CBIC.
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