Section 145 of GST Law

[Yogesh Panchal]

A registered taxable person, who was not liable to be registered under the earlier law or who was engaged in the manufacture of exempted goods under the earlier law but which are liable to tax under this Act, shall be entitled to take, in his electronic credit ledger, credit of eligible duties and taxes in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the appointed day subject to the following conditions:

1. such inputs and / or goods are used or intended to be used for making taxable supplies under this Act;
2. the said taxable person was eligible for cenvat credit on receipt of such inputs and/or goods under the earlier law but for his not being liable for registration or the goods remaining exempt under the said law;
3. the said taxable person is eligible for input tax credit under this Act;
4. the said taxable person is in possession of invoice and/or other prescribed documents evidencing payment of duty / tax under the earlier law in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the appointed day; and
5. such invoices and /or other prescribed documents were issued not earlier than twelve months

But currently we have do two Business (1) manufacturing & (2) Trading, we are follow the rule 6(3)a of Cenvat Credit Rules-2004, maintain separate account of manufacturing inputs material & for the trading material also, revert service tax credit at turnover ratio prescribe in the central excise law. In above scenario please guide following points.

1. Trading warehouse material on which we have not take the credit, we have not charged excise duty at the time of sales, not collect duty from our customer, but if duty paid stock laying in trading warehouse on 30^th June-2017. As a closing stock. also after implementation of GST, we have liable to pay GST on above duty paid trading goods, which excise duty paid but do not take credit , in the above case tax paid two time, first at the time of purchase paid excise duty & after 1^st July-2017 GST payable, what action we are do? ,
2. We have take trading warehouse goods excise duty credit before 30^th June-2017? which invoice one year time limit not over In current law?, after take credit in excise law and carried forward under section 143 of GST law?
3. After 1^st July-2017 above credit eligible for carried forward under section 143 of GST law? But credit not appeared in the last return, then how we have save the credit of duty paid goods laying at trading warehouse s closing stock of 30^th June-2017.

AI Summary

Taxable persons under GST can claim input tax credit on stock if conditions are met, including valid invoices. A registered taxable person under the GST law, previously not liable for registration or engaged in manufacturing exempted goods, can claim credit for eligible duties and taxes on stock inputs if certain conditions are met. These include using inputs for taxable supplies, eligibility for input tax credit under both the earlier and current law, and possessing valid invoices issued within a year. A query was raised about handling excise duty paid on trading warehouse stock as of June 30, 2017, post-GST implementation. The response clarified that under GST, manufacturers and traders are both suppliers, and input tax credit rules apply without distinction.