AVAILMENT OF CENVAT CREDIT ON INPUT SERVICES BY SSI UNITS

[VINOD KUMAR]

DEAR EXPERT PLEASE REPLY WHETHER A SSI UNIT REGISTERED UNDER CENTRAL EXCISE CAN AVAIL CENVAT CREDIT OF INPUT SERVICES:-1. BEFORE CROSSING LIMIT OF Rs. 150 LACS. 2. AFTER CROSSING THE LIMIT OF ₹ 150 LACS. 3.IS CENVAT CREDIT ON INPUT SERVICES REQUIRED TO BE REVERSED BEFORE AVAILING SSI EXEMPTION IN NEXT YEAR.

AI Summary

Can SSI units claim CENVAT credit on input services before and after exceeding the 150 lakh turnover limit? A discussion on whether Small Scale Industry (SSI) units registered under Central Excise can avail CENVAT credit on input services before and after crossing the 150 lakh turnover threshold. One response indicates that SSI units can avail CENVAT credit on inputs and input services when they start paying duty on final products, but accumulated input services are not allowed during the SSI exemption period. Another response suggests referring to specific notifications for further clarification on SSI exemptions and CENVAT credit applicability.