CENTRAL GOODS AND SERVICES TAX (AMENDMENT) ACT, 2018
Section 20 - Amendment of section 49
Amendments to Section 49 of the Principal Act
The amendments to section 49 of the principal Act involve changes in how input tax credit is utilized. Firstly, sub-section (2) has been updated to include references to both section 41 and section 43A, instead of just section 41. This implies that the provisions of section 43A are now also applicable in the context of section 49.
Secondly, sub-section (5) has been modified with new provisos in clauses (c) and (d). In clause (c), a proviso has been added stating that the input tax credit related to State tax can only be used for paying integrated tax if there is no available balance of input tax credit for central tax to cover integrated tax payments. Similarly, clause (d) now includes a proviso indicating that the input tax credit for Union territory tax can be used for integrated tax payments only when there is no remaining input tax credit for central tax available for such payments. These changes ensure that central tax credits are prioritized over state or Union territory tax credits for settling integrated tax liabilities.
Note: It is an AI generated summary for reference purpose only.
(a) in sub-section (2), for the word and figures “section 41”, the words, figures and letter “section 41 or section 43A” shall be substituted;
(b) in sub-section (5),––
(i) in clause (c), the following proviso shall be inserted, namely:––
“Provided that the input tax credit on account of State 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;”;
(ii) in clause (d), the following proviso shall be inserted, namely:––
“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;”.
