Question 4 - VAT credit was not available on items 'X' & 'Y' as capital goods in the existing law (Central Excise). Since they are covered in GST, can the registered taxable person claim it now?
Input tax credit eligibility under GST: transitional rule bars claiming credit for goods not eligible under prior law. Credit under GST is permitted only when it was admissible under the existing pre GST law and is admissible under GST; consequently, the proviso to section 140(2) of the SGST Act prevents claiming input tax credit for goods that were not eligible as capital goods under the prior regime.
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Provisions expressly mentioned in the judgment/order text.
Input tax credit eligibility under GST: transitional rule bars claiming credit for goods not eligible under prior law.
Credit under GST is permitted only when it was admissible under the existing pre GST law and is admissible under GST; consequently, the proviso to section 140(2) of the SGST Act prevents claiming input tax credit for goods that were not eligible as capital goods under the prior regime.
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