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IGST credit utilisation order under Rule 88A:
AUse IGST credit only for IGST
BIGST credit must be fully utilised for IGST liability first; balance for CGST OR SGST in any order
CUse IGST credit only for CGST
DUse IGST credit only for SGST
Answer & Solution
Correct answer: B. IGST credit must be fully utilised for IGST liability first; balance for CGST OR SGST in any order
1. Rule 88A — IGST credit shall first be utilised to pay IGST liability in full; thereafter the remaining IGST credit may be used to pay CGST or SGST/UTGST in any order/proportion.
2. Until the IGST balance is exhausted, CGST/SGST credit cannot be touched.
3. This is to ensure that IGST settlement between Centre and States is cleanly tracked.
_Source: ICAI BoS CA Final Paper 8, Ch 6 "Input Tax Credit", §Rule 88A_
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