Order of utilisation of input tax credit
Section 49B, CGST Act
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Lets the Government prescribe the order and manner of using input tax credit – the power under which Rule 88A allows IGST credit to be set against CGST and SGST in any order once IGST liability is met.
What this means in practice
The parts that actually decide cases — the things a practitioner checks first.
The enabling power for Rule 88A and for any future change to the order of utilisation.
How this provision is built
The skeleton, clause by clause — useful when a notice cites a specific sub-clause.
The exact words of the law
468 characters, uneditedReproduced from the CBIC text. We explain it above — but you should always be able to read it yourself.
Read the full provision+
(1) Notwithstanding anything contained in this Chapter and subject to the provisions of clause
(e) and clause
(f) of sub section
(5) of section 49 , the Government may, on the recommendations of the Council, prescribe the order and manner of utilisation of the input tax credit on account of integrated tax, central tax, State tax or Union territory tax, as the case may be, towards payment of any such tax.]
High Court cases on this section
Judgments in our index that cite this provision. Being listed does not make a case good law — it may have been appealed or distinguished since. Read it before relying on it.
What changed, and when
The amendment trail, newest first — because the version that applies to your case depends on the period.
date not stated · Insertedbys
Inserted by s. 21 of The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 of 2018) -Brought into force w.e.f. 01 st 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 If you spot anything out of date, tell us and we’ll fix it — this hub is checked daily against CBIC.
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