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CS Executive · Tax Laws and Practice · Input Tax Credit and Computation of GST Liability

Under the CGST Act, 2017, Section 49B empowers the Government to prescribe the order and manner of utilisation of ITC. On whose recommendation, and subject to what, may it do so?

The Government may prescribe the order and manner of ITC utilisation on the recommendations of the GST Council, and this power is subject to clauses (e) and (f) of sub-section (5) of section 49. It does not override those clauses.

  1. AOn the recommendations of the Council, subject to clauses (e) and (f) of sub-section (5) of section 49Correct
  2. BOn the recommendations of the GST Appellate Tribunal, without any restriction
  3. COn the recommendations of the Council, overriding clauses (e) and (f) of sub-section (5) of section 49
  4. DOn the recommendations of the Comptroller and Auditor General, subject to Section 16

Explanation

Section 49B allows the Government, on the Council's recommendations, to prescribe the order and manner of ITC utilisation, subject to clauses (e) and (f) of section 49(5). The option saying it overrides those clauses is wrong because the section is made subject to them.

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