Question 8 - A registered person has excess ITC of ₹ 10, 000/- in his last VAT return for the period immediately preceding the appointed day. Under GST he opts for composition scheme. Can he carry forward the aforesaid excess ITC to GST?
Input tax credit carryforward barred when opting composition scheme; VAT ITC cannot be transferred under Section 140(1). A registered person who reported excess VAT input tax credit in the return immediately preceding the appointed day and elects the Composition Scheme under GST cannot carry forward that VAT input tax credit into GST pursuant to the transitional restriction in Section 140(1).
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Provisions expressly mentioned in the judgment/order text.
Input tax credit carryforward barred when opting composition scheme; VAT ITC cannot be transferred under Section 140(1).
A registered person who reported excess VAT input tax credit in the return immediately preceding the appointed day and elects the Composition Scheme under GST cannot carry forward that VAT input tax credit into GST pursuant to the transitional restriction in Section 140(1).
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