Carry forward of Credit under GST regime

[Guest]

Sir,

What is the position of the credit in case of Purchases in Transit (Including Import), stock with Depot and Stock Transfer which are in Transit on the appointed day?

[KASTURI SETHI]

Dear Querist, Credit on purchases in transit on the appointed day would be allowed. Regarding the remaining points, no possibility of credit. However, any change in revised model GST Act can take place. Earlier, Sections were changed. So we will have to wait for the enactment of GST for authentic reply to every query on GST.

[Ganeshan Kalyani]

Let us wait for final version of GST law.

[YAGAY andSUN]

Whatever amount which had been shown in your Statutory Returns (VAT/Service Tax/Excise returns) would be allowed to be carried forward under GST regime. However, such portion of credit would be subject to checks and audit under respective VAT/Service Tax/Excise Laws and provisions made there under.

Final position will be freezed once the GST Law would come into final shape/version.

[YAGAY andSUN]

Goods lying at Depots/Warehouses/Godown/Private warehouses more than of 12 months would loose transferring of Credit under GST Laws. Please check this aspect also.

[Guest]

Dear Expert

Is it mandatory to take registration business vertical wise in GST

AI Summary

Carry forward of input tax credit under GST: purchases in transit permitted, other stock eligibility contingent on enacted law. Purchases in transit on the appointed day are permitted to be carried forward as credit. Credits shown in prior statutory returns are contemplated to be carried forward but remain subject to reconciliation, checks and audits under legacy laws and transitional provisions. Goods held at depots/warehouses beyond an indicated aging threshold risk losing eligibility to transfer credit. Final entitlement and procedural requirements, including any need for registration by business vertical, depend on the provisions of the enacted GST law.