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Credit of unsold stock [Section 140(3)] - Actual Credit as well as Notional Credit - Part-I - GST Transitional provisions

Goods and Services Tax - GST - By: - Sanjay Kumawat - Dated:- 25-5-2017 Last Replied Date:- 23-9-2017 - Central Levies Q. Whether a person can claim a credit for taxes paid in relation to goods lying in the stock where such person is having taxpaying documents? Ans. As per section 140(3) of CGST Act, 2017, a registered person under GST who was- not liable to be registered under the existing law, or engaged in the manufacture of exempted goods or provision of exempted services, or providing works .....

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: the duty of excise specified in the First Schedule to the Central Excise Tariff Act, 1985(5 of 1986); the duty of excise specified in the Second Schedule to the Central Excise Tariff Act, 1985(5 of 1986); the additional duty of excise leviable under section 3 of the Additional Duties of Excise (Textile and Textile Articles) Act, 1978 (40 of 1978); the additional duty of excise leviable under section 3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957(58 of 1957); the N .....

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d Service Tax is not covered under the category of eligible duty. Therefore, a person cannot claim a credit of CST as well as Service Tax. Q. Whether credit in relation to input services and capital goods can be claimed? Ans. As per section 140(3) of the CGST Act, 2017, credits in relation to inputs only can be claimed. Accordingly, credits in relation to input services and capital goods cannot be claimed. Q. What is the meaning of input', input services and capital goods ? Ans. The meaning .....

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claiming the input tax credit and which are used or intended to be used in the course or furtherance of business. Q. What will be the eligible credit amount that a person can claim? Ans. If a registered person is having taxpaying documents (like tax invoice, bill of entry etc.) then a person can claim the credit equivalent to the actual amount of duty or tax paid which is mentioned in the taxpaying documents. Q. What are the conditions to avail credit of tax/duty paid in relation to unsold stock .....

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prescribed documents were issued not earlier than twelve months immediately preceding the appointed day, and the supplier of services is not eligible for any abatement under the Act. Notional Credit- @40% Q. Whether a person can claim a credit for taxes paid in relation to goods lying in the stock where such person is not having taxpaying documents? Ans. As per proviso to section 140(3) of CGST Act, 2017 read with Rule 1 (3) of the Transition Rules, 2017, a registered person under GST who was n .....

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oviding works contract service and was availing of the benefit of notification No. 26/2012-Service Tax, dated 20.06.2012, or a first stage dealer or a second stage dealer, or a registered importer, or a depot of a manufacturer. Q. What are the eligible duties for which credit can be taken? Ans. Following are the eligible duties for which credit can be claimed: the duty of excise specified in the First Schedule to the Central Excise Tariff Act, 1985(5 of 1986); the duty of excise specified in the .....

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ments, are as follows: the National Calamity Contingent Duty leviable under section 136 of the Finance Act, 2001(14 of 2001) the additional duty leviable under sub-section (1) of section 3 of the Customs Tariff Act, 1975 (51 of 1975); the additional duty leviable under sub-section (5) of section 3 of the Customs Tariff Act, 1975 (51 of 1975). Q. Whether credit in relation to input services and capital goods can be claimed? Ans. As per Rule 1 (3) of the Transition Rules, 2017, credits in relation .....

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of ₹ 50,000/- as on appointed date. Such person has supplied goods for ₹ 60,000/- and on which he has paid CGST @14% i.e., ₹ 8,400/-(Rs. 60,000@14%). Now, in accordance with the provisions of Transition Rules, he can claim credit to the extent of 40% of CGST paid, i.e., ₹ 3,360/- (Rs. 8,400@40%). Q. Is there any time period to avail this scheme? Ans. Yes, to claim benefit under this scheme, a person has to claim credit within 6 tax periods. Q. What are the conditions to a .....

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(2) of rule 1, submits a statement in FORM GST TRAN- at the end of each of the six tax periods during which the scheme is in operation indicating therein the details of supplies of such goods effected during the tax period. The amount of credit allowed shall be credited to the electronic credit ledger of the applicant maintained in FORM GST PMT-2 on the Common Portal. The stock of goods on which the credit is availed is so stored that it can be easily identified by the registered person. Q. Whet .....

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vilable? - Reply By piyush agarwal - The Reply = Reply to Mr. CA.Tarun Agarwalla questiom:- Yes, he will be entitled for input tax credit on inputs held in stock in accordance with the provisions of section 140(3). Being a VAT dealer means you are engaged in exempted service. - Reply By Arun kumar - The Reply = We are textile manufacturer. At present we have opted Central Excise exempted route and we are not charging excise duty for yarn sales and we have not claimed the Excise duty paid for our .....

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CAPITAL GOODS provided you have bills of inputs of last 12 months. As per sec 140(3) of CGST ACT, A registered person, who was not liable to be registered under the existing law, or who was engaged in the manufacture of exempted goods or provision of exempted services, or who was providing works contract service and was availing of the benefit of notification No. 26/2012-Service Tax, dated the 20th June, 2012 or a first stage dealer or a second stage dealer or a registered importer or a depot of .....

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ssion of invoice or other prescribed documents evidencing payment of duty under the existing law in respect of such inputs; such invoices or other prescribed documents were issued not earlier than twelve months immediately preceding the appointed day; and the supplier of services is not eligible for any abatement under this Act: Provided that where a registered person, other than a manufacturer or a supplier of services, is not in possession of an invoice or any other documents evidencing paymen .....

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proviso to section 140(3) still not avilable? Reply : In relation to services, you cannot claim the credit, as section 140(3) specifically says about the eligible duties and eligible duties does not include service tax. - Reply By CASANJAY AITHAN - The Reply = We are textile manufacturer.At present we have opted Central Excise exempted route and we are not charging excise duty for yarn sales and we have not claimed the Excise duty paid for our purchases so for . Also we have not mentioned our E .....

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