ITC, TRANSITIONAL PROVISION,ROYALTY UNDER GST,TAX RATE DIFF WITH EARLIER REGIME

[RAJESH LANGALIA]

I have following query which you please reply as soon as possible with reference to section and law :
1. as on 30.06.2017, I have input credit lying in Capital Work in progress in terms of civil foundation work for plant and machinery. Will I be able to claim it as Input tax credit in GST regime as per provisions of 140 (2) of CGST act ?
2. If I am paying Royalty to Government, whether it would be subjected to GST and thereby would be able to avail credit of that?
3. In current tax regime, I am manufacturing non excisable product and for that service tax paid on input services or excise paid on material consumed in final non excisable products are charged to expenses. Now in GST regime, the final product is chargeable to GST, would I be able to claim ITC of earlier period up to 30.06.2017 which was an expense in earlier tax regime. please give section reference
4. In GST regime, if my output product is having lower GST tax rate and input material is having higher GST tax rate, whether I would be able to get the refund of excess credit carried forward ? if so when and how ? please give section reference.

[Himansu Sekhar]

My personal view. Other experts may comment

1.the credit which is ineligible under the existing law cannot be transferred.When the credit is now not eligible , the same cannot be transferred under sec. 140

2.royalty is chargeable to service tax. Eligibility of credit - more clarity is awaited. FAQ in this regard may be referred

3. You can rely upon the 60/40 percent scene of gst paid

4. This matter will be clear after some days. Also anti profiteering issue will be settled

Purely personal view.

AI Summary

Input tax credit transitional limits restrict carryforward of ineligible pre-GST credits; refund rules remain uncertain. Credits ineligible under the pre-GST law cannot be transferred under section 140, royalty to government is treated as taxable service with credit eligibility pending FAQ guidance, a transitional 60/40 allocation is suggested for earlier expenses on inputs for non-excisable products, and refundability of excess carried-forward input tax where input rates exceed output rates remains uncertain pending clarification and anti-profiteering considerations.