Section 145 of GST Law

[Guest]

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.

[Nash Industries I Pvt Ltd]

Under the GST law, there is no distinction between manufacturer and trader and both are treated as supplier of goods. The GST is payable as supplier of goods and not as manufacturer or trader.

The account and record rules under the GST to be maintained separately for manufacturer and trader. However, from the input tax credit perspective it is not distinguishable.

The definition of input or capital good is wide under GST.

The trader can avail the credit of tax paid on the stock held with him on the appointed day. The GST is payable on all supplies on or after the appointed day.

You may please refer to GST transitional rules in CBEC website in this regard.

Hope, clarified.

Regards

S.Ramaswamy

AI Summary

Transitional input tax credit available for suppliers to claim tax paid on stock at the appointed day, subject to documentary conditions. Transitional input tax credit may be claimed in the electronic credit ledger for eligible duties and taxes paid under the earlier law on inputs and goods held in stock on the appointed day, subject to conditions: use for taxable supplies, prior eligibility for credit under the earlier law, eligibility under GST, possession of invoices or prescribed documents evidencing payment issued within twelve months, and compliance with record keeping. Traders and manufacturers are treated alike for credit entitlement; maintain separate accounts for activities but rely on GST transitional rules and documentary evidence to carry forward or claim credit for stock tax paid before the appointed day.