Cenvat Credit of Exmpted unit like Uttarakhand, Himachal & Sikkim

[Guest]

Dear Experts,

We have a manufacturing unit in Haridwar which is exempted by area based so we don't take credit and also don't charge the tax in invoice.

But in GST this exemption is not continue So my query is.

1) How the cenvat credit taking for stock held as on 30.06.2017 like input, capital , WIP & FG.

2) What about the GIT materials which are removal from supplier in Jun and we received this material in July.

Please provide your valuable suggestion for the the same.

Regards

Swapneswar Muduli

[DR.MARIAPPAN GOVINDARAJAN]

Area based exemption will not continue in GST regime. Whether GST will be implemented in such States since the internet infrastructure is lagging in these States.

[Sakthivel S]

We understand there will be a refund mechanism set up for the area based exemptions.

Whether such mechanism has been set up

AI Summary

Area-based exemption cessation under GST raises transitional input tax credit issues for on-hand and in-transit stock. Cessation of area-based exemption under GST raises entitlement questions for transitional input tax credit on on-hand stock-inputs, capital goods, work-in-progress and finished goods-held at the cut-off, and for goods dispatched before but received after the cut-off. Commentary records that the exemption will not continue under GST and that a refund or other transitional administrative mechanism is expected, while implementation and procedural details remain uncertain.