GST CREDIT ON OPENING STOCK

[RAJESH CHANANA]

Dear Experts

We are importing Goods which are used for manufacture of final products on which we are taken CENVAT credit on Excise duty, & SAD. We are also importing trading goods by separate Invoice & Bill of Entry and not taking any credit on CENVAT. However we take refund of SAD on goods sold in trading.

Now my question is whether we can take credit on Excise duty & SAD on Opening stock on trading items (which I have cleared from custom after paying Excise duty and SAD ) which are available with us on the date of implementation of GST.

Thanks

Rajesh

[KASTURI SETHI]

Yes. You can take credit.

[Ganeshan Kalyani]

I agree with Sri Kasturi Sir's reply . In case you dont have duty paid document then credit is eligible for 40%/60% of CGST payable.

AI Summary

GST credit on opening stock permitted; limited entitlement applies under transitional rules if duty documentation is absent. Claimants may avail transitional input tax credit of Excise duty and Special Additional Duty paid on trading goods held as opening stock on the GST implementation date. Where duty-paid documentation is absent, a restricted entitlement applies under the transitional mechanism, yielding a reduced admissible credit determined by transitional rules.