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TMI BlogTransition Provisions under GSTX X X X Extracts X X X X X X X X Extracts X X X X ..... zed under three heads: a) relating to input tax credit b) Continuance of existing procedures such as job work for a reasonable period without any adverse consequence under GST law. c) All claims (pending as well as future) pertaining to existing laws filed before, on or after the appointed day. a) A. Transitional arrangements for ITC Elaborate provisions have been made to carry forward the ITC earned under the existing law. Such credit should be permissible under GST law. However, the taxable person opting for composition scheme would not be eligible for carry forward of existing ITC. ITC of various taxes under the existing laws (CENVAT credit, VAT etc.) would be carried forward as under: a) Closing balance of the credit in the last r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ise duty/VAT. For such traders who do not have excise or VAT Invoice, there is a scheme to allow credit to them on the duty paid stock. The features of this scheme are as under: i. The scheme is operative only for six months from 1st July, 2017. It is not available to manufacturer or supplier of service. It is available to traders only. ii. Credit @ 60% on such goods which attract central tax @ 9% or more and @ 40% for other goods of GST paid on such stock cleared after 1st July, 2017 would be allowed. However, such goods should not be unconditionally exempted goods or taxed at nil rate under the existing law. It has also been provided that where integrated tax is paid on such goods, the amount of credit shall be allowed at @ 30% and 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ditions: - i. Such Input stock used for taxable supply under this Act. ii. Registered person is not covered under section 10 (composition scheme) of this Act. iii. Registered person is eligible for ITC under this Act. iv. Registered person is in possession of such Invoice or other duty payment documents. v. Such Invoices are not more than twelve months old on appointed day. h) ITC in case of Centralized Registration under service tax: Such registered person can take credit of the amount of CENVAT carry forwarded in return furnished under the existing law, if the original / revised return under the existing law has been filed within three months. Such credit may be transferred to any of the registered persons having the same PAN for w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rer may transfer the goods to premises of a registered person without payment of tax within the prescribed period. In case of finished goods, the manufacturer may transfer the goods on payment of tax or clear for export within the prescribed period. b) Goods removed before 6 months of the appointed day i.e. 1st July, 2017 but returned within 6 months from 1st July, 2017: If such goods are returned by an unregistered person, then refund of the duty/VAT paid under existing law can be claimed If returned by a registered person, then return of goods shall be treated as supply of goods (ITC can be claimed) c) Goods sent on approval basis before 6 months of the appointed day i.e. 1st July, 2017 but returned within 6 months from 1st July, 2017 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to refund claims of CENVAT credit/VAT or export related rebate or service tax, such proceedings may either result in recovery of tax or refund.
All such cases would be disposed of under the existing law. If any claim for refund of CENVAT credit is fully or partially rejected, the amount so rejected shall lapse. Refund of CENVAT credit shall be paid in cash. There will be no refund of CENVAT if already carry forwarded. If any amount becomes recoverable, the same shall be recovered as arrear of tax under GST Act.
Statutory provisions relating to transition are contained in chapter XX (section 139 to 142) of the CGST Act, 2017, SGST Act(s), 2017 and Rule 117 to 121 of the CGST Rules, 2017. X X X X Extracts X X X X X X X X Extracts X X X X
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