Tax paid on Goods lying with Agent under section 192

[RAM SHARMA]

Dear Experts,

if any goods lying at the premises of the agent on the appointed day , agent shall be entitled to take credit of the same subject to the following conditions :

• Agent is Registered taxable Person under the act.

• Both the agent and principal declare the detail of such goods before the appointed day as prescribed. It means 30.06.2017.

• Invoice of the same goods have not been issued earlier than twelve months before the appointed day.

• Principal has not availed the credit of the same goods.

A) Whether a manufacturer have to reverse both vat and cenvat credit utilized in manufacturing of excisable goods. If so then what will be the formula of vat and cenvat reversal on stock lying with agent.

B) Whether Agent can take input credit of both vat and cenvat, when we have removed excisable goods against Form F (Transfer Sale)

C) Whether it is possible if freight paid by company on customer behalf and after that charged by customer through debit or credit note. The purpose of our do not include freight in transaction value so that we could save GST on freight in GST Regime.

Please Advice.

Thanks&Regards

AI Summary

GST Credit Claims for Agents: Conditions and Queries on VAT, CENVAT, and Freight Costs Explained An individual inquired about the Goods and Services Tax (GST) implications for goods held by an agent on the appointed day. The agent can claim credit if they are registered, both parties declare the goods by June 30, 2017, invoices are not older than 12 months, and the principal hasn't claimed credit. The questions raised included whether manufacturers must reverse VAT and CENVAT credits, if agents can claim input credit for VAT and CENVAT when goods are transferred, and if freight costs can be excluded from transaction value to save GST. The query received one reply seeking further expert guidance.