UTGST Act, 2017 — Chapter IV — Payment of Tax

UNION TERRITORY GOODS AND SERVICES TAX ACT, 2017 Chapter IV — PAYMENT OF TAX (Sections 9, 9A, 9B, 10) Chapter Index — fourteen-section architecture Effective from 1 July 2017 (UTGST…

Chapter Index — fourteen-section architecture

Effective from 1 July 2017 (UTGST Act, 2017) | First Edition | May 2026

[Payment + utilisation order + transfer mechanism for UTGST]

1. Scope at a Glance

Chapter IV UTGST (ss. 9, 9A, 9B, 10) establishes the payment + utilisation + transfer framework for UTGST. Section 9 prescribes the substantive order of ITC utilisation with mutual CGST/UTGST exclusion. Section 9A reinforces IGST-first principle. Section 9B gives Government prescription power. Section 10 provides the transfer mechanism for UTGST credit utilised against IGST liability.

2. Section-by-Section Synopsis

SECTION	SYNOPSIS
Section 9	Substantive utilisation order — IGST first, then CGST + UTGST; CGST↔UTGST mutual exclusion.
Section 9A	Non-obstante — UTGST credit only after IGST exhausted.
Section 9B	Government power to prescribe order subject to s. 49(5)(e) CGST.
Section 10	Transfer mechanism — UTGST credit used for IGST → Centre transfers from UTGST account to IGST account.

3. Key Doctrines

DOCTRINE	SOURCE
IGST-first principle	Rule 88A + s. 9A.
CGST/UTGST mutual exclusion	s. 9(c) and (d).
Government prescription power	s. 9B + s. 49B CGST.
Transfer mechanism	s. 10 + back-end Centre-UT settlement.
VKC Footsteps validation	Refund as statutory entitlement.
Safari Retreats functionality test	For upstream ITC chain.

4. Amendment Timeline

DATE	CHANGE
01.07.2017	Chapter IV in force.
01.02.2019	s. 49A + 49B CGST applied via s. 21 + s. 9B framework.
01.04.2019	Rule 88A IGST-first principle.
01.01.2020	PMT-09 effective via s. 17A IGST.

5. Forms

FORM	PURPOSE
GSTR-3B Table 6.1	Utilisation reporting.
Form PMT-09	Cross-ledger cash transfer.
Form GSTR-3B Tables 3.1	Output tax reporting.

6. Due-Date Footprint

TRIGGER	TIMELINE
GSTR-3B utilisation reporting	Monthly 20th/22nd/24th.
s. 10 transfer	Per CBIC monthly cycle.

7. Filing Frequency

Monthly GSTR-3B with utilisation reporting.
PMT-09 event-driven.

8. CBIC Notifications

INSTRUMENT	SUBJECT
Rule 88A CGST	IGST-first.
Circular 98/17/2019	Rule 88A operational.
CBIC Settlement Procedure	Centre-UT settlement.

9. Sectoral Pointers

SECTOR	POINTERS
Intra-UT manufacturers	IGST-first + CGST + UTGST utilisation.
Exporters in UTs	IGST-paid route triggers s. 10 transfers.
Multi-State/UT enterprises	PMT-09 within GSTIN.

10. Practitioner Quick-Reference

SITUATION	ANSWER
What is utilisation order?	IGST first per Rule 88A + s. 9A; then CGST + UTGST per s. 9.
Can CGST credit pay UTGST?	NO per s. 9(c).
Can UTGST credit pay CGST?	NO per s. 9(d).
What triggers s. 10 transfer?	UTGST credit used for IGST payment.

11. Cross-Chapter Coordination

Chapter III (ss. 7-8) — Charging.
Chapter V (s. 11) — Officers assist.
Chapter VI (ss. 12-13) — Demands.
Chapter IX (s. 21) — Application of CGST.
s. 49(5) CGST — Master utilisation.
s. 18 IGST — ITC transfer.
Rule 88A CGST — IGST-first.

12. File-Link Navigation

FILE	COVERAGE
00 - Chapter IV Index.docx (this file)	Chapter-level index.
Section 9-10 - Payment of tax and Transfer of input tax credit.docx	Combined file — ss. 9, 9A, 9B, 10.

13. External Anchors

CGST Act s. 49 framework.
IGST Act ss. 17A + 18.
Rule 88A CGST.
Form PMT-09.
CBIC Settlement Procedure.

14. Key Takeaways

IGST-first principle under Rule 88A + s. 9A.
CGST/UTGST mutual exclusion under s. 9(c)/(d).
s. 10 transfer mechanism for UTGST credit used for IGST.
Government prescription power under s. 9B.
PMT-09 (post 01.01.2020) for cross-ledger cash transfers.
Coordinate with CGST + IGST utilisation frameworks.

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