Input credit on closing stock as on appointed date

[Govind Gupta]

Dear Sirs

As we are trader and currently not eligible for input tax credit of CVD paid on our imports and ED paid on local purchases, what is the process of computation of credit to be claimed under GST, also as we know, there are two options for your total inventory

1. if you have duty paying document for the closing stock of inventory,

a. you are eligible for full credit ( what will the value of credit, is it what we have actually paid or some other computed value)

b. does this stock need to be less than 1 year old

c. do we need to transfer the credit to customers

d. is there any time limit to clear such stock

2. if we don’t have duty paying document for the closing stock of inventory,

a. are we eligible only for 40% of CGST portion

b. does this stock need to be less than 1 year old

c. do we need to transfer the credit to customers

d. is there any time limit to clear such stock

regards

Govind

AI Summary

Trader Can Claim Full GST Input Tax Credit on Stock with Duty Documents; 40% on Excise Duty Stock Without. A trader inquired about claiming input tax credit under GST for closing stock as of the appointed date. If they possess duty-paying documents, they can claim full credit, provided the invoice is less than a year old, with no obligation to transfer credit to customers or a time limit to clear stock. Without duty-paying documents, they may claim only 40% of the CGST portion if the stock has excise duty elements. A respondent clarified these points, emphasizing that non-duty-paid stock is ineligible for the 40% claim.