Chapter IV - Payment of tax
Section 9B
Section 9B: Order of utilisation of input tax credit
Section 9B authorises the Government, on the GST Council’s recommendation, to prescribe the order and manner of using GST input tax credits. Its power remains subject to Section 9(c), which bars UTGST credit against central tax.
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Need advice on Section 9B?
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 this Chapter and subject to the provisions of clause (c) of section 9, 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.
Key takeaways
Rule-making power
The Government may prescribe how IGST, CGST, SGST and UTGST credits are applied to tax liabilities.
Statutory boundary
A prescribed order cannot override the Section 9(c) prohibition on using UTGST credit for central tax.
Transaction-date rule
The actual set-off sequence must be checked against the rules effective for the return period.
Rule-making power
The Government may prescribe how IGST, CGST, SGST and UTGST credits are applied to tax liabilities.
Statutory boundary
A prescribed order cannot override the Section 9(c) prohibition on using UTGST credit for central tax.
Transaction-date rule
The actual set-off sequence must be checked against the rules effective for the return period.
Practical checklist
Do
- Identify the current prescribed credit-utilisation rule for the tax period.
- Keep UTGST credit separate from CGST liability.
- Reconcile the electronic credit ledger and return before submission.
Frequently asked questions
Can a rule allow UTGST credit to pay CGST?
Section 9B is expressly subject to Section 9(c), which prohibits that use.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026