IGST credit shall be utilized first April 9, 2019
CBIC vide its Notification No.16/2019-Central Tax reconsidering its stand on utilization of IGST credit. Rule 88A has been inserted in the CGST Rules to inform that input tax credit on account of IGST (Integrated GST) shall first be utilized towards payment of IGST, and the remaining IGST credit (if any) may be utilized towards the payment of CGST and SGST or UTGST, as the case may be in any order.
As such, IGST credit shall now first be utilized to pay off IGST liability and the balance of IGST credit, if any, can be utilized to pay off SGST or CGST liability, in any order. It may be noted that the credit of SGST or CGST can be utilized only after exhausting the IGST credit.