CGST credit can be utilised for payment of:
ACGST first; balance for IGST. Cannot be used for SGST.
BAny tax in any order
COnly IGST
DOnly CGST
Answer & Solution
Correct answer: A. CGST first; balance for IGST. Cannot be used for SGST.
1. Sec 49(5)(b) read with Rule 88A — CGST credit can be utilised first for CGST liability, then for IGST liability.
2. CGST credit can NEVER be used for SGST/UTGST (cross-state credit invasion prevented).
3. IGST credit must be fully utilised first (Rule 88A) before CGST/SGST credit can be touched for any tax.
_Source: ICAI BoS CA Final Paper 8, Ch 6 "Input Tax Credit", §Sec 49 + Rule 88A_
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