Section 49B - Order of utilisation of input tax credit
Section 49B - Utilization Order for Input Tax Credit
This section allows the government to decide and specify the order in which businesses can use their input tax credits. This is applicable to credits from integrated tax, central tax, state tax, or union territory tax. The government can make these decisions based on recommendations from the GST Council. This means that businesses must follow the prescribed order when using their tax credits to pay off their tax liabilities. The rules for this are outlined in other parts of the law, specifically in section 49. This helps ensure that the tax system is organized and that credits are used efficiently and fairly. The section allows flexibility for the government to manage how these credits are applied, ensuring that the tax system functions smoothly and effectively.
Note: It is an AI generated summary for reference purpose only.
1[49B. Order of utilisation of input tax credit
(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.]1
