Traders Eligible to Pay GST on Brought Out Goods without doing any manufacturing or deemed manufacturing activity, Goods and Services Tax - GST

[yogesh Panchal]

Dear All, GST Tax Experts,

In current central excise law the levy of excise duty on manufactured of finished goods , also manufactured only charged excise duty, the biggest litigation and issues are goods are manufactured, deemed manufacturer, Traders, Dealers & etc. then in the Trading business Trader purchase brought out goods, do not take cenvat credit of excise & service tax, do not take any manufacturing activity on the brought out goods, do not take excise registration and brought out goods cleared without excise duty with adding profit margin, pay CST/VAT.

Posts / Replies

[Ganeshan Kalyani]

Whether you are updating us with the information or asking our view / query. I could not understand , please clarify.

[YAGAY AND SUN]

Going by your writeup we do understand that you are asking a query which is being replies as follows:

GST would be levy, charged and collected on the basis either on supply of goods or services. The very concept of sales of goods and providing/receiving of services would be vanished in GST regime.

[yogesh Panchal]

(1) In current central excise law the levy of excise duty on manufactured of finished goods , also manufactured only charged excise duty, the biggest litigation and issues are goods are manufactured, deemed manufacturer, Traders, Dealers & etc. then in the Trading business Trader purchase brought out goods, do not take cenvat credit of excise & service tax, do not take any manufacturing activity on the brought out goods, do not take excise registration and brought out goods cleared without excise duty with adding profit margin, pay CST/VAT.

Now in GST Régimes above type of Trading business liable for take credit & pay GST on brought material which not doing any manufacturing or deemed manufacturing activity????,

(2 ) As per GST Model Law “ if the credit is not availed and not reflected in the return of march-2017”, as of now there is no provision in GST Model Law to avail the credit in future.

In respect of the above condition Following Credit/paid Amount Not reflected In the Excise & Service tax Returns, due to at the time of taking credit amount reflected in closing balance, as well as duty paid or Credit Revert Under protest then reflected in the closing balance, it mines that the impact is plus & minus equal to zero, then above type of transaction not reflected in the closing balance of 31^st March 2017 & returns

1. Amount paid against grant conditional stay at various stages like tribunal, High Court.

2. Disputed Credit Revert Under protest before issue SCN.

3. Credit Revert Under protest after issue SCN and pending status at various stages.

Then what action we ate take for the same????

[Ganeshan Kalyani]

Point wise view is as under:

1. The point of taxation in current tax regime is service provided or to be provided, manufacturing activity carried out, goods traded etc. But in GST the point of taxation is supply.

Trading business will be able to take credit if definition of supply is met. Seemless flow of credit is aimed in GST.

2. More clarity is still expected in this aspect. So will have to wait for some more time.

[Ganeshan Kalyani]

Thanks TMI Editor is Chief for doing necessary clean up in this issue id.

[MAHESHKUMAR SHARMA]

Now the GST is on transaction and not on manufacturing