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CS Professional · Goods and Services Tax (GST) and Corporate Tax Planning · Input Tax Credit and Computation of GST Liability

Section 49B of the CGST Act, 2017 empowers the Government in relation to the utilisation of input tax credit. What does it provide?

Section 49B lets the Government, on the Council's recommendations, prescribe the order and manner of utilising input tax credit of integrated, central, State or Union territory tax towards any such tax. This power is subject to clauses (e) and (f) of section 49(5).

  1. AThe Government may, on the recommendations of the Council, prescribe the order and manner of utilisation of input tax credit, subject to clauses (e) and (f) of section 49(5)Correct
  2. BThe GST Council alone may notify the order of utilisation without any Government involvement
  3. CThe Government may prescribe the order of utilisation on its own, ignoring clauses (e) and (f) of section 49(5)
  4. DThe Government may allow cash ledger balance to be used for ITC utilisation

Explanation

Section 49B begins with a non-obstante clause but is expressly subject to clauses (e) and (f) of section 49(5). The order and manner are prescribed by the Government on the Council's recommendations. The option ignoring those clauses is wrong.

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