Clarification regarding procedure for recovery of arrears under the existing law and reversal of inadmissible input tax credit.

Recovery of arrears: inadmissible transitional input tax credit to be recovered as state tax from electronic ledgers.

Amounts of VAT, entry tax or other pre GST levies and any wrongly availed or inadmissible transitional input tax credit that remain unrecovered under the existing law shall be recovered as arrears of State tax under the Assam GST Act. Principal tax liabilities are to be discharged through the electronic credit or cash ledger and recorded in Part II of the Electronic Liability Register (FORM GST PMT 01), while related interest, penalty and late fee must be paid from the electronic cash ledger and similarly recorded. Unregistered dealers' arrears are to be recovered in cash under the existing law.