Rule 88A - Order of utilization of input tax credit
CGST Rules, 2017
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Finin2min Summary - Rule in 2 Minutes
After full discharge of IGST liability, remaining IGST credit may be used toward CGST and SGST/UTGST in any order and proportion before CGST/SGST credit.
Exact operative text
88A. Order of utilization of input tax credit.- Input tax credit on account of integrated tax shall first be utilised
towards payment of integrated tax, and the amount remaining, if any, may be utilised towards the payment of
central tax and State tax or Union territory tax, as the case may be, in any order: Provided that the input tax
credit on account of central tax, State tax or Union territory tax shall be utilised towards payment of
integrated tax, central tax, State tax or Union territory tax, as the case may be, only after the input tax credit
available on account of integrated tax has first been utilised fully.183 182 Inserted vide Notf no. 31/2019 -
CT dt.28.06.2019 with effect from 21.04.2020 as notified by Notification No. 37/2020 dated 28.06.2020. 183
Inserted vide Notf No. 16/2019-CT dt. 29.03.2019
Paragraph-wise decode
After full discharge of IGST liability, remaining IGST credit may be used toward CGST and SGST/UTGST in any order and proportion before CGST/SGST credit.
Section-Rule-Form-Notification bridge
No direct Rule certified in Phase 1. Check notifications, circulars, forms and corresponding State law.
The mapping is a legal concordance, not a round-robin related-link list. It is limited to instruments certified in this phase.
Practical example
Apply the rule to the relevant form, period, portal event and evidence trail before reaching a compliance conclusion.
Professional alert
Verify the latest official active Rule page, amending Gazette and portal version before filing or advising.
Implementation checklist
- Fix the transaction, taxable period and jurisdiction.
- Read every subsection, proviso, explanation and omission marker.
- Open the mapped Rule, form, notification and circular.
- Test State/UT variation and portal version.
- Preserve evidence, approvals, working papers and acknowledgements.
- Record the conclusion, assumptions, source date and reviewer.
Evidence and retention checklist
- Contract, purchase order, invoice or underlying transaction document.
- Registration, return, ledger, challan and portal acknowledgement.
- Official Act/Rule/notification version used and effective date.
- Internal tax position paper, computation and management approval.
- Correspondence, notices, replies, orders and appeal papers where applicable.
Practical Q&A
- What does rule 88A regulate?
- It regulates order of utilization of input tax credit. Read the exact text, conditions, exceptions and transaction date together.
- Which subordinate law should be checked?
- No direct CGST Rule has been certified in this phase. Notifications, circulars, forms and the corresponding SGST/UTGST layer may also apply.
- What evidence should be retained?
- Preserve the contract or transaction record, invoice or form, portal acknowledgement, payment/ledger evidence, correspondence, legal working and the official source version used.
- Can portal behaviour override the statute?
- No. Portal functionality is operational evidence; legal entitlement and liability remain controlled by the Act, Rules, notifications and binding decisions.