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Section 9 of the UTGST Act, 2017

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GST›UTGST Act, 2017

At a glance

Entitlement and conditions

Section 9(b), provisoUTGST credit can be used against integrated tax only where central-tax credit is not available for that payment. This proviso took effect on 1 February 2019.

Bars, duties and time limits

Section 9(c)UTGST credit cannot be used towards central tax.

Procedure, powers and definitions

Section 9(a)Integrated-tax credit first goes towards integrated tax. The clause then names central tax and State tax or Union territory tax, in that order, for the remaining amount.
Section 9(b)Union territory tax credit first goes towards Union territory tax; any remaining amount can be used towards integrated tax subject to the proviso.
Section 9(a)The law does not settle whether the whole remaining integrated-tax credit must be applied to central tax before any is applied to State tax or Union territory tax.

Section 9 sets the basic order for using integrated-tax and Union territory tax credit in the electronic credit ledger. It restricts cross-use of UTGST credit and gives central-tax credit priority before UTGST credit is used against integrated tax. These rules must be read with the overriding integrated-credit rule in section 9A and the prescribed-order power in section 9B.^[1]

Quick facts

Section 9, UTGST Act, 2017

Payment of tax

Provision
Act	Union Territory Goods and Services Tax Act, 2017
Section title	Payment of tax
Amendments
Amendments	1 footnote in the CBIC text (table)
Related provisions
Sections	8A, 9A, 9B
Structure 9(a)Integrated-credit initial use 9(a)Remaining integrated-credit order 9(b)Union-territory credit initial use 9(b) provisoRemaining Union-territory credit to IGST 9(c)UT-to-central credit prohibition
Source
Law text	CBIC tax information portal, served on 17 September 2026^[1]

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 9, verbatim (show)

Section 9. Payment of tax. The amount of input tax credit available in the electronic credit ledger of the registered person on account of,-

(a) integrated tax shall first be utilised towards payment of integrated tax and the amount remaining, if any, may be utilised towards the payment of central tax and State tax,or as the case may be, Union territory tax, in that order;

(b) the Union territory tax shall first be utilised towards payment of Union territory tax and the amount remaining, if any, may be utilised towards payment of integrated tax;

¹[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;]

(c) the Union territory tax shall not be utilised towards payment of central tax.

1. Inserted vide s. 3 of the Union Territory Goods and Services Tax(Amendment) Act, 2018 w.e.f 1st February, 2019.

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.

Integrated-credit initial use 9(a)

Questions to answer on the file5 questions

Which tax head owns the credit being utilised: integrated, central, State or Union territory?
Was available IGST credit first applied to IGST?
Is the person registered under incorporated CGST25?
Does this person hold a Unique Identity Number?
Is the input credit available in this registered persons electronic credit ledger being utilised toward payment of tax?

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Remaining integrated-credit order 9(a)

Questions to answer on the file7 questions

Which tax head owns the credit being utilised: integrated, central, State or Union territory?
Was IGST credit first applied to IGST?
Towards which tax head is the credit utilised: integrated, central, State or Union territory?
Is the proposed use of remaining IGST credit permissible under the reserved ordering question?
Is the person registered under incorporated CGST25?
Does this person hold a Unique Identity Number?
Is the input credit available in this registered persons electronic credit ledger being utilised toward payment of tax?

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Union-territory credit initial use 9(b)

Questions to answer on the file5 questions

Which tax head owns the credit being utilised: integrated, central, State or Union territory?
Was UT credit first applied to UT tax?
Is the person registered under incorporated CGST25?
Does this person hold a Unique Identity Number?
Is the input credit available in this registered persons electronic credit ledger being utilised toward payment of tax?

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Remaining Union-territory credit to IGST 9(b) proviso

Questions to answer on the file7 questions

Which tax head owns the credit being utilised: integrated, central, State or Union territory?
Towards which tax head is the credit utilised: integrated, central, State or Union territory?
Was UT credit first applied to UT tax?
Is central credit unavailable for this IGST payment?
Is the person registered under incorporated CGST25?
Does this person hold a Unique Identity Number?
Is the input credit available in this registered persons electronic credit ledger being utilised toward payment of tax?

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UT-to-central credit prohibition 9(c)

Questions to answer on the file5 questions

Which tax head owns the credit being utilised: integrated, central, State or Union territory?
Towards which tax head is the credit utilised: integrated, central, State or Union territory?
Is the person registered under incorporated CGST25?
Does this person hold a Unique Identity Number?
Is the input credit available in this registered persons electronic credit ledger being utilised toward payment of tax?

Ticks stay in this browser only.

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]

Amendments to section 9 as footnoted in the CBIC text
Note	Change
1	Inserted vide s. 3 of the Union Territory Goods and Services Tax(Amendment) Act, 2018 w.e.f 1st February, 2019.^[2]

Provisions connected to Section 9
Provision	Connection	Words that tie them
Section 9A	this provision overridden priority this provisionA	9(a) "integrated tax shall first be utilised"
Section 9B	this provision subject to prescribed ordering this provisionB	9(a) "in that order"

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.

Notifications (5)

Number	Date	Subject
Notification No. 03/2019-Union Territory Tax (Rate)	29 March 2019	Seeks to amend notification No. 11/2017- Union Territory Tax (Rate) so as to notify UTGST rates of various services as recommended by Goods and Services Tax Council for real estate sector.
Notification No. 08/2019-Union Territory Tax (Rate)	29 March 2019	Seeks to amend notification No. 1/2017- Union Territory Tax (Rate) so as to notify UTGST rate of certain goods as recommended by Goods and Services Tax Council for real estate sector.
Notification No. 02/2019-Union Territory Tax (Rate)	7 March 2019	To give composition scheme for supplier of services with a tax rate of 6% having annual turn over in preceding year upto Rs 50 lakhs amended by a later instrument
Notification No. 11/2017-Union Territory Tax (Rate)	28 June 2017	To notify the rates for supply of services under UTGST Act amended by a later instrument
Notification No. 12/2017-Union Territory Tax (Rate)	28 June 2017	To notify the exemptions on supply of services under UTGST Act amended by a later instrument

Unsettled questions

The words of section 9 do not answer this question. Where one decides a matter on the file, the answer depends on the position taken on it.

Where credit of integrated tax remains after payment of integrated tax, does CGST section 49(5)(a) or UTGST section 9(a) require the whole of it to be applied to central tax before any of it goes to State tax or Union territory tax?

See also

Section 9B of the UTGST Act, 2017: order of utilisation of input tax credit
Section 8A of the UTGST Act, 2017: power not to recover Goods and Services Tax not levied or short-levied as a result of general practice
Section 9A of the UTGST Act, 2017: utilisation of input tax credit

References

Central Board of Indirect Taxes and Customs. "Section 9. Payment of tax". Union Territory Goods and Services Tax Act, 2017, CBIC tax information portal, with amendment footnotes 1 to 1. Retrieved 17 September 2026.
The Union Territory Goods and Services Tax(Amendment) Act, 2018. Cited in CBIC footnote 1.

External links

UTGST Act, 2017, Section 9 on the CBIC tax information portal