New User   Login      
Tax Management India .com TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

Products currently exempt but likely to be taxed under GST - Model GST Law takes care of it

Goods and Services Tax - GST - By: - SKP IDT - Dated:- 18-6-2016 Last Replied Date:- 30-12-1899 - Hope for GST being a reality in April 2017 rekindled with a positive meeting of the Empowered Committee of State Finance Ministers on 14 June 2016. Statement of the Union Finance Minister Mr. Jaitley stating a broad consensus have been built over GST bill and all the States barring one - Tamil Nadu are onboard for implementing GST. The Model GST Law would act as a broad framework and Central GST as .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

red taxable person, who was not liable to be registered under the earlier law or who was engaged in the manufacture of exempted goods under the earlier law but which are liable to tax under this Act, shall be entitled to take, in his electronic credit ledger, credit of eligible duties and taxes in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the appointed day subject to the following conditions: (i) such inputs and / or goods are used o .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ier law in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the appointed day; and (v) such invoices and /or other prescribed documents were issued not earlier than twelve months immediately preceding the appointed day. (2) The amount of credit under sub-section (1) shall be calculated in accordance with generally accepted accounting principles in such manner as may be prescribed. (3) The amount taken as credit under sub-section (1) shall b .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ained in semi-finished or finished goods held in stock Following conditions required to be fulfilled - The inputs/ goods are intended to be used for making taxable supplies under the GST Act; The CENVAT credit on such goods was available to the Company under the current indirect tax regime but the credit could not be claimed as goods of the Company were exempt under the current regime; The Company should be eligible to claim input tax credit under the proposed GST Act; Invoice or other prescribe .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

s engaged in manufacture of goods which are currently exempt (say Pharma companies engaged in manufacture of medicines or vaccines) and are therefore unable to claim CENVAT credit/ input tax credit of the taxes paid on procurement of inputs. Companies which have opted for concessional duty rate of 2% (subject to non-availment of CENVAT credit on inputs) would also benefit from the said provision. A look at other transitional provisions Section 143 of the Model Law provides for carry forward of C .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

n of availment of 50% CENVAT credit in year of purchase of capital goods is addressed. Still in dark? Though the Model GST Law has attempted to provide clarity on transitional aspects to a great extent, it is still silent on issue of CENVAT credit accumulated in the current regime on inputs lying in stock which are to be used in manufacture of exempt goods (which are taxable under the current regime). Though the possibility of such a scenario is quite remote, provisions providing express clarity .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version