Carry forward of input credit

[Arun Aggarwal]

Sir

I am a registered dealer and buying goods after paying vat of 13.5% locally and selling them on CST at the rate of 2%, and without claiming any refund adjusting the same in the other trading.

Want to know that what will be the status of any input credit left with me when GST takes over and I will have no stocks but input credit

Arun

[KASTURI SETHI]

Still so many rules are at draft stage. Picture will be clear only after finalisation of all GST Rules.

[DR.MARIAPPAN GOVINDARAJAN]

Only Telengana State has passed the SGST Bill. Other States have not yet come to the picture. As rightly said by Shri Sethi your query cannot be given answer at this stage.

[Ganeshan Kalyani]

CBEC releases draft rules on Accounts and Records, Appeals and Revision and Advance Ruling under GST, in the public domain on 19th April, 2017. The Government has invited comments on these draft rules from the stakeholders by 27 April 2017.

The above justifies that still rules are under draft stage.

[Himansu Sekhar]

When the law has not been set out, it is not possible to comment. But hope the best.

[KASTURI SETHI]

As expressed by Sh.Kalyani Ji, on the basis of my experience I am hopeful that such credit would not lapse and would be carried. At present it is wild guess and ray of hope in favour of assessees.

[Govind Gupta]

Hi Arun, you are saying that what happens to the credit for goods which are not with you, i am not sure if i have understood your question correctly.

[KASTURI SETHI]

Dear Querist,

Sh.Govind Gupta has rightly raised query. How the balance of cenvat credit would be in your Cenvat Account without physical stock on the appointed day ? Pl. clarify your query.

[Arun Aggarwal]

Sir

I am referring to the case of vat and cst , where I buy goods locally after paying vat of 13.5% and selling them to the other state on 2% cst . So I have vat input left with me local vat - cst so no physical stock but balance input.

It is not Cenvat

Arun

[MUKUND THAKKAR]

Are showing closing balance in your vat returns regularly ?

if yes than you have to carried forward same amount under GST. it is not necessary to you have stock on hand in respect of vat credit.

[Arun Aggarwal]

Sir

Yes I m showing the input balance in my all relevant vat rerturns and duely assesed.

Tnx

AI Summary

Carryforward of input tax credit uncertain as GST replaces VAT/CST; balances shown in returns may be eligible. Carryforward of input credit when GST replaces VAT/CST depends on pending transitional rules; contributors note that a regularly shown and assessed closing input balance in VAT returns is likely to form the basis for any carryforward claim, even if no physical stock remains, but the final position awaits rule finalisation.