仕入税額控除の利用順序

Input Tax Credit ("ITC") is a fundamental concept of Goods and Service Tax ("GST"). GST is levied in 3 forms viz. Integrated Goods and Service Tax ("IGST"), Central Goods and Service Tax ("CGST") and State/Union Territories  Goods and Service Tax ("SGST/UTGST").

GST portal maintains separate ITC accounts for all such forms of GST, i.e., GST input on account of IGST gets credited into ITC ledger of IGST. Similar process is applicable for CGST & SGST/UTGST also. As separate accounts are maintained for all type of GST, it is pertinent to get clarity about order and manner of utilisation of ITC.

Section 49 of Central Goods and Service Tax Act, 2017 ("CGST Act") deals with order of utilisation of ITC. However, Central Goods and Services Tax (Amendment) Act, 2018 ["CGST (Amendment) Act"] amended the provisions of Section 49 and also inserted Section 49A and 49B thereafter. Further, Rule 88A also got inserted in Central Goods and Service Tax Rules, 2017 ("CGST Rules") vide power conferred u/s 49B of CGST Act.

Post such amendments various representations were received from industry regarding accumulation of ITC for one kind of tax (to say SGST) in ITC ledger and discharge of liability for other kind of tax (to say CGST) through cash. Accordingly to provide clarity on manner of utilisation of ITC, Central board of Indirect Taxes and Customs ("CBIC") has issued circular 98/17/2019 dated 23rd April, 2019.

Gist of provisions given under Section 49, 49A and 49B of CGST Act read with Rule 88A of CGST Rules and above mentioned circular is as follows:

1. Order and Manner of Utilization of ITC lying under IGST

• ITC lying in IGST shall be utilised toward payment of following taxes in this order only (Section 49B of CGST Act read with Rule 88A of CGST Rules):
  • IGST Output Liability
  • CGST/SGST/UTGST Output Liability, any order

• CGST法第49条(5)(a)は、IGSTのITCはまずIGSTの支払いに充当し、残額がある場合はそれぞれCGSTおよびSGST/UTGSTの支払いに充当すべきであると規定しています。ただし、CGST規則第88A条と併せて読むCGST法第49B条の規定は、ITCに関する第V章全体に優先します。

• CGSTおよびSGST/UTGSTのITCは、IGSTのITCが当該支払いに全額充当された後にのみ利用できるものとします。（規則第88A条と併せて読む第49A条）

2. Order and manner of utilization of ITC lying in CGST

• ITC lying in CGST shall be utilised toward payment of output liability in following order (Section 49(5)(b) of CGST Act):
  • CGST output liability
  • IGST Output Liability

• CGST口座のITCは、SGST/UTGSTの出力税額の支払いには充当できません（CGST法第49条(5)(e)）
• 。SGST/UTGSTのITCは、IGSTのITCが当該支払いに全額充当された後にのみ利用できるものとします。（規則第88A条と併せて読む第49A条）

3. Order and manner of utilization of ITC lying in SGST/UTGST

• SGST/UTGSTのITCは、以下の順序で出力税額の支払いに充当されるものとします（CGST法第49条(5)(c)/(d)）：
  • SGST/UTGSTの出力税額
  • IGSTの出力税額

• SGST/UTGSTのITCは、CGSTのITC残高がIGSTの支払いに利用できない場合に限り、IGSTの支払いに充当できるものとします。（第49条(5)(c)/(d)の但書）
• SGSTはCGSTの支払いには充当できません（第49条(5)(f)）
• SGST/UTGSTのITCは、IGSTのITCが当該支払いに全額充当された後にのみ利用できるものとします。（規則第88A条と併せて読む第49A条）

Order and manner of utilisation of ITC is presented below in tabular form for simplification purpose:

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4. Illustrations of order and manner of utilisation of ITC

Amount of ITC available and output liability under different heads:

Option:1

Option:2

Please note that GST portal has not been updated as per amendments made by CGST (Amendment) Act, i.e., Section 49, 49A and 49B of CGST Act read with Rule 88A  of CGST Rule and therefore, it is working as per utilisation order given before amendment. Accordingly, taxpayer may continue to utilise their ITC as per mechanism available on GST portal till GST portal get updated as per amendment.