Chapter X - Payment of tax
Section 49B
Section 49B: Order of utilisation of input tax credit
Section 49B authorises prescribed ordering and manner for using IGST, CGST, SGST and UTGST credit, subject to section 49 cross-use prohibitions.
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Need advice on Section 49B?
This article is for general information. Refer to the Central Goods and Services Tax Act, 2017 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
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.
Introduction
The Act delegates the detailed credit-utilisation sequence to Rules made on the Council’s recommendations. Section 49B must be read with sections 49 and 49A.
Key takeaways
Prescribed order
The Government may prescribe the order and manner for using credit under the four specified tax heads toward permitted taxes.
Statutory limits remain
The delegated order remains subject to section 49(5)(e) and (f), which forbid CGST–SGST/UTGST cross-use.
Practical application
Check the current Rules and ledger balances before setting off output tax; do not infer a complete numeric allocation from section 49B alone.
Prescribed order
The Government may prescribe the order and manner for using credit under the four specified tax heads toward permitted taxes.
Statutory limits remain
The delegated order remains subject to section 49(5)(e) and (f), which forbid CGST–SGST/UTGST cross-use.
Practical application
Check the current Rules and ledger balances before setting off output tax; do not infer a complete numeric allocation from section 49B alone.
Practical checklist
Do
- Identify the output-tax heads due.
- Apply section 49A first and the current prescribed ordering next.
- Confirm prohibited cross-use has not occurred.
Avoid
- Treat a statutory rate ceiling as the notified live rate.
Frequently asked questions
Does section 49B itself specify a full payment algorithm?
No. It authorises the Government to prescribe the order and manner, within specified statutory limits.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026