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

Under section 49(12) of the CGST Act, 2017, what may the Government do on the Council's recommendations?

The Government may, on the recommendations of the Council, specify a maximum proportion of output tax liability under the CGST or IGST Act that a registered person or class of persons can discharge through the electronic credit ledger, subject to conditions and restrictions.

  1. ASpecify a maximum proportion of output tax liability that may be discharged through the electronic credit ledgerCorrect
  2. BProhibit use of the electronic cash ledger for tax payment
  3. CAllow CGST credit to be used for paying State tax
  4. DRequire all interest to be paid from the electronic credit ledger

Explanation

Section 49(12) lets the Government, on the Council's recommendations and subject to conditions, specify a maximum proportion of output tax liability dischargeable through the credit ledger. The other options contradict section 49(5)(e), 49(3) or 49(4).

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