TMI BlogTransitional ProvisionsX X X X Extracts X X X X X X X X Extracts X X X X ..... issible as input tax credit under this Act; (ii) the registered person has furnished all the returns required under the existing law (i.e. Central Excise and VAT) for the period of six months immediately preceding the appointed date; (iii) the said amount of credit does not relate to goods manufactured and cleared under such notifications as are notified by the Central Government.) Under SGST law there will be one more condition as given below: - So much of the said credit as is attributable to any claim related to section 3, sub-section (3) of section 5, section 6, section 6A or sub-section (8) of section 8 of the Central Sales Tax Act, 1956 that is not substantiated in the manner, and within the period, prescribed in rul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to Q4) under the existing law, will the recovery be done under the GST Law or the existing law? Ans. The recovery relating to ITC wrongfully enjoyed, unless recovered under the existing law, will be recovered as arrears of tax under GST. Q 6. Give two examples of registered taxable persons who are not liable to be registered under the existing law (Central Excise / VAT) but are required to be registered under GST? Ans. A manufacturer having a turnover of say ₹ 60 lakh who is enjoying SSI exemption under the existing law will have to be registered under GST as the said turnover exceeds the basic threshold of ₹ 20 lakh - section 22. A trader having turnover below the threshold under VAT but, making sales th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is entitled to refund of such tax [CST, in this case] paid under the existing law if the aforesaid buyer is an unregistered person under GST and the goods are returned within 06(six) months (or within the extended period of maximum two months) from the appointed day and the goods are identifiable - Section 142(1). Q 10. Shall a manufacturer or a job worker become liable to pay tax if the inputs or semi-finished goods sent for job work under the existing law are returned after completion of job work after the appointed day? Ans. No tax will be payable by the manufacturer or the job worker under the following circumstances: (i) Inputs/ semi-finished goods are sent to the job worker in accordance with the provisions of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n or after the appointed day, whether GST would be payable? Ans. No tax under GST will be payable if finished goods removed from factory prior to the appointed day to any other premise for carrying out certain processes are returned to the said factory after undergoing tests or any other process within six months (or within the extended period of maximum two months) from the appointed day - section 141(3). Q 14. When tax shall become payable in GST on manufactured goods sent to a Job worker for carrying out tests or any other process not amounting to manufacture under the existing law? Ans. Where manufactured goods are sent to a job worker prior to the appointed day for carrying out tests or any process not amounting to ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g to a claim for CENVAT/input tax credit or any output tax liability initiated whether before, on or after the appointed day, will be disposed of in accordance with the existing law and any amount of credit of CENVAT/ input tax credit or output tax found admissible for refund will have to be refunded in accordance with the existing law. However, any amount which becomes recoverable will have to be recovered as arrears of tax under the GST Law---Section 142(6)/142(7). Q 19. If the appellate or revisional order goes in favour of the assessee, whether refund will be made in GST? What will happen if the decision goes against the assessee? Ans. The refund will be made in accordance with the provisions of the existing law only. In cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ributed in GST regime? Ans. Yes, irrespective of whether the invoice(s) relating to such services is received on or after the appointed day section 140(7) of the CGST Act. Q 25. Where any goods are sold on which tax was required to be deducted at source under State VAT law and an invoice was also issued before the appointed day, shall deduction of tax at source shall be made under this Act if the payment is made after the appointed day? Ans. No, in such case no deduction of tax at source shall be made under GST. Q 26. Goods were sent on approval not earlier than six months before the appointed day but are returned to the seller after 6 months from the appointed day, will tax be payable under GST? Ans. Yes, if ..... X X X X Extracts X X X X X X X X Extracts X X X X
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