TaxTMI 
TaxTMI 
Transfer of EC & SHEC balance in GST is possible or not. If not the what we will do of balances.
Rgds,
MJ
Education Cess & SHEC balance
22 May 2017 
4 Replies 
10930 Views Asked by
Transfer of cess credit: admissibility under transitional GST rules determines migration of education and SHE cess balances.
The question is whether unutilised Education Cess and SHE Cess declared in pre-GST returns may be carried forward to the GST electronic credit account. One view argues cesses were subsumed into the basic duty rate, allowed as cenvat credit, and therefore transferable under the transitional provisions provided the credit was admissible under prior law and as input tax credit under GST. A contrary view contends that the migration explanation refers to service tax levies and does not include these cesses, so they should not be transferable. (AI Summary)
The question is whether unutilised Education Cess and SHE Cess declared in pre-GST returns may be carried forward to the GST electronic credit account. One view argues cesses were subsumed into the basic duty rate, allowed as cenvat credit, and therefore transferable under the transitional provisions provided the credit was admissible under prior law and as input tax credit under GST. A contrary view contends that the migration explanation refers to service tax levies and does not include these cesses, so they should not be transferable. (AI Summary)