TMI BlogIncentive Scripts and Reversal of ITCX X X X Extracts X X X X X X X X Extracts X X X X ..... We are exporter,We received MEIS scripts from DGFT as incentive, sold which are transfeble to others,hence we sold these scripts on which GST is exempted. My query is whether any proportionate ITC is liable to reverse. - Reply By Ganeshan Kalyani - The Reply = Yes, proportionate credit reversal is required. - Reply By KASTURI SETHI - The Reply = Ultimately, duty credit scrips are to be use ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d for payment of Customs duty. In my view, proportionate reversal of ITC is not required. Duty credit scrips are rewards earned as export incentive under MEIS and SEIS. - Reply By Narendra Soni - The Reply = Dear Sir, Agreed, it is incentive, not supply hence proportionate ITC need not to revers. However, our CHA has registered the MEIS script with Customs authority and charge service amount ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with GST, I think the ITC on that bill is not eligible to us ??,kindly confirm - Reply By KASTURI SETHI - The Reply = Sh.Soni Ji, Why do you think so ? What is reasoning ? What is brewing in your mind ? Pl. share here. In my view, in this scenario ITC is allowed as this input service conforms to the parameters laid down in Section 16(1) of CGST Act. It is in the course of business. It is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not hit by Section 17 of CGST Act as well. - Reply By Narendra Soni - The Reply = Dear Sir, Because GST on sale of MEIS script is exempted. We are not paying GST at the time of sale of it then how we can avail ITC which accrued on account of MEIS script. Kindly confirm my logic is correct or not to avoid litigation by department. - Reply By KASTURI SETHI - The Reply = Dear Sir, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... You have said above, CHA is charging service amount with GST . Pl. elaborate/clarify. - Reply By Narendra Soni - The Reply = To sell/use of MEIS, it required to register with Customs authority and this work is done by our CHA for which he raise bill of services with GST to us. Can ITC is eligible on such CHA bill. - Reply By KASTURI SETHI - The Reply = Authority regarding non-rever ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sal pertaining to pre-GST era. Duty credit scrip - Reversal of amount under Rule 6(3) of Cenvat Credit Rules not applicable Circular No. 973/7/2013-CX., dated 4-9-2013 - Reply By KASTURI SETHI - The Reply = In my view ITC is admissible. If you have even an iota of doubt, file an application with AAR. Dust will be settled once for all. - Reply By YAGAY andSUN - The Reply ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... = In our view, proportionate ITC is required to be reversed if MEIS/SEIS scrips are being sold. There is no GST is applicable on Selling of MEIS/SEIS as these are now exempted. However, for getting registered at Customs Ports, the GST so charged for providing of such services by Customs Brokers, if availed as ITC, then it is required to be reversed on the date of selling of MEIS/SEIS. - Incent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ive Scripts and Reversal of ITC - Query Started By: - Narendra Soni Dated:- 2-2-2020 Goods and Services Tax - GST - Got 10 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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