Chapter IV - Payment of tax
Section 9A
Section 9A: Utilisation of input tax credit
Section 9A overrides the ordinary UTGST credit order in Section 9: available integrated-tax credit must be applied toward the relevant integrated or Union territory tax payment before UTGST credit is used for it.
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Need advice on Section 9A?
This article is for general information. Refer to the Union Territory 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 section 9, the input tax credit on account of Union territory tax shall be utilised towards payment of integrated 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 towards such payment.
Key takeaways
IGST credit first
UTGST credit may be used for IGST or UTGST only after available IGST credit has first been used for that payment.
Override of Section 9
The opening words make Section 9A controlling where its sequence conflicts with Section 9.
Read with the rules
The return and ledger application must also follow any valid order and manner prescribed under Section 9B.
IGST credit first
UTGST credit may be used for IGST or UTGST only after available IGST credit has first been used for that payment.
Override of Section 9
The opening words make Section 9A controlling where its sequence conflicts with Section 9.
Read with the rules
The return and ledger application must also follow any valid order and manner prescribed under Section 9B.
Practical checklist
Do
- Check the balance of available IGST credit before applying UTGST credit.
- Apply the current prescribed credit-utilisation order to the relevant tax period.
- Reconcile portal offsets against the statutory cross-utilisation restrictions.
Frequently asked questions
May UTGST credit be used while IGST credit remains available for the same payment?
Section 9A requires the available IGST credit to be used first for that payment.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026