Traders Eligible to Pay GST on Brought Out Goods without doing any manufacturing or deemed manufacturing activity

[Asked by Guest]

Dear All, GST Tax Experts,

In current central excise law the levy of excise duty on manufactured of finished goods , also manufactured only charged excise duty, the biggest litigation and issues are goods are manufactured, deemed manufacturer, Traders, Dealers & etc. then in the Trading business Trader purchase brought out goods, do not take cenvat credit of excise & service tax, do not take any manufacturing activity on the brought out goods, do not take excise registration and brought out goods cleared without excise duty with adding profit margin, pay CST/VAT.

AI Summary

Supply concept in GST shifts tax incidence to supply, requiring traders to claim input tax credit only where supply is established.
GST taxes supplies rather than manufacturing; traders who merely buy and resell brought out goods must take input tax credit and account for GST only where their transactions constitute supply and credits are otherwise allowable. Transitional ambiguity exists for credits or duty payments not reflected in returns by the prescribed cut off-examples include amounts under conditional stays, disputed credits reversed under protest, and credits affected by show cause proceedings-because the model law then lacked a clear mechanism to claim such amounts after the cut off.