Text
The text below is the section as served by the CBIC tax information portal on 17 September 2026, with the portal's own amendment footnote markers (shown as small numerals before a bracket) and its footnotes.[1] The Act as published in the Gazette of India is the legal source.
Section 49B, verbatim (show)
1[Section 49B. Order of utilisation of input tax credit.-
(1) 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.]
1. Inserted by s. 21 of The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 of 2018) -Brought into force w.e.f. 01st February, 2019.
49B(1)Power with preserved limits
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 utilisationSection 49B(1)
The power overrides the other provisions of the Chapter. Section 49(5)(e) and (f) remain controlling qualifications. The prescription covers the specified credit heads towards payment of the corresponding named taxes.
Questions to answer on the fileThe prescription of the order and manner2 questions
Questions to answer on the fileThe credit utilised and the tax it is utilised towards4 questions
Questions to answer on the fileThe overriding of the rest of the Chapter1 question
Other questions to answer on the file
Questions a reviewer answers from the engagement file, grouped by the part of the section they come from. They describe what the section asks; they do not decide it.
Scope the section as a whole
Questions to answer on the file1 question
The clauses this section is subject to clause (e) and clause (f) of sub-section (5) of section 49
Questions to answer on the file1 question
Frequently asked questions
Who prescribes the utilisation order?
The Government prescribes it on the Council's recommendations. The power covers both order and manner.
Section 49B(1)
Does the Chapter override displace every section 49 restriction?
No. Clauses (e) and (f) of section 49(5) are expressly preserved as qualifications.
Section 49B(1)
Which credit heads fall within the prescription power?
Integrated, central, State and Union territory tax credit fall within it. Their utilisation towards the stated taxes follows the prescribed order and manner.
Section 49B(1)
Amendment history
The CBIC text carries 1 footnote. The table gives each in the source's own terms. Effective dates are as the footnotes state them.[1]
| Note | Change | Instrument | Effective from |
|---|---|---|---|
| 1 | Inserted the whole section | s. 21 of The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 of 2018)[2] | brought into force w.e.f. 01st February, 2019 |
Relationship with other provisions
| Provision | Connection | Words that tie them |
|---|---|---|
| Section 49 | this provision overridden by clause (e) and clause (f) of sub-section (5) of Section 49 | 49B(1) "subject to the provisions of clause (e) and clause (f) of sub section (5) of section 49" |
Circulars and notifications
Circulars and notifications in the CBIC repository that cite this section, newest first, by number, date and subject. A listing here does not say what an instrument decides; read the instrument.
Circulars (2)
| Number | Date | Subject |
|---|---|---|
| Circular No. 172/04/2022-GST | 6 July 2022 | Clarification on various issue pertaining to GST |
| Circular No. 98/17/2019-GST | 23 April 2019 | Seeks to clarify the manner of utilization of input tax credit post insertion of the rule 88A of the CGST Rules. |
Notifications (1)
| Number | Date | Subject |
|---|---|---|
| Notification No. 03/2019-Central Tax | 29 January 2019 | Seeks to amend the CGST Rules, 2017. |
Unsettled questions
The words of section 49b do not answer this question. Where one decides a matter on the file, the answer depends on the position taken on it.
- the section leaves its content to be prescribed rather than silent; what is missing is an instrument, not a firm position
See also
- Section 49 of the CGST Act, 2017: payment of tax, interest, penalty and other amounts
- Section 49A of the CGST Act, 2017: utilisation of input tax credit subject to certain conditions
References
- Central Board of Indirect Taxes and Customs. "Section 49B. Order of utilisation of input tax credit". Central Goods and Services Tax Act, 2017, CBIC tax information portal, with amendment footnotes 1 to 1. Retrieved 17 September 2026.
- The Central Goods and Services Tax (Amendment) Act, 2018. Cited in CBIC footnote 1.
External links
- CGST Act, 2017, Section 49B on the CBIC tax information portal