Sections 43A, 48, 49, 49A and 49B of the CGST Amendment Act, 2018
The Central Goods and Services Tax (Amendment) Act, 2018 amended the GST practitioner and payment provisions and introduced provisions concerning return-based input tax credit and the order of utilisation of input tax credit. This page reproduces the relevant 2018 amendments and explains their present legal status.
Insertion of Section 43A - procedure for furnishing return and availing input tax credit
Section 18 of the Central Goods and Services Tax (Amendment) Act, 2018 proposed to insert section 43A after section 43 of the CGST Act, 2017. It contemplated supplier-furnished details, recipient verification and a prescribed mechanism for availing input tax credit.
18. After section 43 of the principal Act, the following section shall be inserted, namely:-
"43A. (1) Notwithstanding anything contained in sub-section (2) of section 16, section 37 or section 38, every registered person shall in the returns furnished under sub-section (1) of section 39 verify, validate, modify or delete the details of supplies furnished by the suppliers.
(2) Notwithstanding anything contained in section 41, section 42 or section 43, the procedure for availing of input tax credit by the recipient and verification thereof shall be such as may be prescribed.
(3) The procedure for furnishing the details of outward supplies by the supplier on the common portal, for the purposes of availing input tax credit by the recipient shall be such as may be prescribed.
(4) The procedure for availing input tax credit in respect of outward supplies not furnished under sub-section (3) shall be such as may be prescribed and such procedure may include the maximum amount of the input tax credit which can be so availed, not exceeding twenty per cent. of the input tax credit available, on the basis of details furnished by the suppliers under the said sub-section.
(5) The amount of tax specified in the outward supplies for which the details have been furnished by the supplier under sub-section (3) shall be deemed to be the tax payable by him under the provisions of the Act.
(6) The supplier and the recipient of a supply shall be jointly and severally liable to pay tax or to pay the input tax credit availed, as the case may be, in relation to outward supplies for which the details have been furnished under sub-section (3) or sub-section (4) but return thereof has not been furnished.
(7) For the purposes of sub-section (6), the recovery shall be made in such manner as may be prescribed and such procedure may provide for non-recovery of an amount of tax or input tax credit wrongly availed not exceeding one thousand rupees.
(8) The procedure, safeguards and threshold of the tax amount in relation to outward supplies, the details of which can be furnished under sub-section (3) by a registered person,-
(i) within six months of taking registration;
(ii) who has defaulted in payment of tax and where such default has continued for more than two months from the due date of payment of such defaulted amount, shall be such as may be prescribed."
Amendment of Section 48 - Goods and Services Tax practitioners
Section 48 of the CGST Act deals with Goods and Services Tax practitioners. The 2018 Amendment Act expanded the scope of functions that an authorised GST practitioner could perform, subject to the Act and the prescribed rules.
19. In section 48 of the principal Act, in sub-section (2), after the word and figures "section 45", the words "and to perform such other functions" shall be inserted.
Section 48 should now be read in its current consolidated form because later amendments, including changes associated with the return system, have altered the statutory text.
Amendment of Section 49 - payment of tax, interest, penalty and other amounts
Section 49 governs the electronic cash ledger, electronic credit ledger, electronic liability register and the manner in which GST liabilities are discharged. The 2018 Amendment Act made consequential changes connected with the then-proposed section 43A and the utilisation of credit.
20. In section 49 of the principal Act,-
(a) in sub-section (2), for the word and figures "section 41", the words, figures and letter "section 41 or section 43A" shall be substituted;
(b) in sub-section (5),-
(i) in clause (c), the following proviso shall be inserted, namely:-
"Provided that the input tax credit on account of State tax shall be utilised towards payment of integrated tax only where the balance of the input tax credit on account of central tax is not available for payment of integrated tax;";
(ii) in clause (d), the following proviso shall be inserted, namely:-
"Provided that the input tax credit on account of Union territory tax shall be utilised towards payment of integrated tax only where the balance of the input tax credit on account of central tax is not available for payment of integrated tax;".
Section 49A - utilisation of input tax credit subject to certain conditions
Section 49A gives priority to the utilisation of integrated tax credit. In practical terms, available IGST credit must first be fully utilised before CGST, SGST or UTGST credit is used for payment of the relevant output tax liabilities, subject to the statutory scheme and the rules.
21. After section 49 of the principal Act, the following sections shall be inserted, namely:-
"49A. Notwithstanding anything contained in section 49, 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 towards such payment.
Section 49B - order of utilisation of input tax credit
Section 49B authorises the Government, on the recommendations of the GST Council, to prescribe the order and manner of utilisation of input tax credit, subject to the restrictions stated in section 49(5).
49B. Notwithstanding anything contained in this Chapter and subject to the provisions of clause (e) and clause (f) of sub-section (5) of section 49, the Government may, on the recommendations of the Council, prescribe the order and manner of utilisation of the input tax credit on account of integrated tax, central tax, State tax or Union territory tax, as the case may be, towards payment of any such tax."
Current law: Section 49A, Section 49B and Rule 88A
Rule 88A of the CGST Rules provides the operational order for utilisation of input tax credit. IGST credit is first used for payment of IGST. The balance, if any, may be used for payment of CGST and SGST/UTGST in any order and proportion. CGST or SGST/UTGST credit is used only after the available IGST credit has been fully exhausted.
| Credit available | Primary utilisation | Further utilisation |
|---|---|---|
| IGST credit | IGST liability first | Balance may be used for CGST and SGST/UTGST in any order and proportion, subject to full exhaustion of IGST credit |
| CGST credit | CGST liability | IGST liability; not SGST/UTGST liability |
| SGST/UTGST credit | SGST/UTGST liability | IGST liability; not CGST liability |
Official references
For the operative law, refer to the Central Goods and Services Tax Act, 2017 on India Code, the CBIC Central Tax Notifications, and CBIC Circular No. 98/17/2019-GST on the order of utilisation of input tax credit.
Updated: 15 September 2026. This article preserves the relevant text of the Central Goods and Services Tax (Amendment) Act, 2018 while separately identifying provisions that were not brought into force or were subsequently omitted.