Section 49B is the rule-making power behind Rule 88A. It lets the Government, on the Council's recommendation, set the order of using credits — but never to let CGST credit pay SGST, or the reverse.
Key points
- Under section 49B of the CGST Act, 2017 the Government may, on the recommendations of the GST Council, prescribe the order and manner of using IGST, CGST, SGST and UTGST credit, notwithstanding anything in Chapter X.
- The power is subject to section 49(5)(e) and (f): CGST credit cannot pay SGST or UTGST, and SGST or UTGST credit cannot pay CGST.
- It was inserted with effect from 01.02.2019; Rule 88A, made under it, took effect on 29.03.2019.
The provisions
49BOrder of using credit
Statutory text
(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.
- Rule 88A, CGST Rules (Notification 16/2019-Central Tax)
Statutory text as published on the CBIC tax information portal, as on 03.10.2026; the numbered notes record each amendment. Official source
Common questions
- What is the legal basis of Rule 88A?
- Section 49B of the CGST Act, which lets the Government prescribe the order and manner of using credit on the Council's recommendation.
Commentary and case notes checked against the judgments and CBIC sources on 04.10.2026.
What it means
The non-obstante clause allows the rules to depart from the sequence in section 49(5) and from section 49A — as Rule 88A does by letting IGST credit be applied to CGST and SGST in any order and proportion.