Rule 88A of CGST Rules 2017: Order of utilization of input tax credit (ITC)

Provisions under Rule 88A of the Central Goods and Services Tax (CGST) Rules, 2017 relating to “Order of utilization of input tax credit (ITC)”, are as under:

CGST Rule 88: Order of utilization of input tax credit (Chapter-IX: Payment of Tax)

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.

Amendments History:

1. CGST Rule 88A inserted vide Central Tax Notification 16/2019 dt. 29/03/2019.

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Note: The CGST Rules 2017 along with the prescribed Forms were initially notified vide Central Tax Notifications 3/2017 dt. 19/06/2017 (Rule 1 to 26), 10/2017 dt. 28/06/2017 (Rules 27 to 138) and 15/2017 dt. 01/07/2017 (Rules 139 to 162). These Rules/ Forms were subsequently amended by CBIC through various Notifications issued from time to time. Information on this page is a Rule-wise compilation of Amendments made by all such Notifications upto 29/12/2021, with best possible efforts for accuracy. In any case, E&OE. For official/ updated information, please visit CBIC website.