Input credit on closing stock

[Guest]

Hello,

​​​​​​​My query is about the adjustment of input credit in case of importer. I want to know how n to what extent an importer can get the input credit of CVD N SAD on closing stock as on 30.06.2017. Rate of gst will be applied 12% under current GST Act. N how will the CVD 12,5%n SAD 4% be set off against.

[Rajagopalan Ranganathan]

Madam,

As per Section 140 (1) of CGST Act, 2017, "a registered person, other than a person opting to pay tax under section 10, shall be entitled to take, in his electronic credit ledger, the amount of CENVAT credit carried forward in the return relating to the period ending with the day immediately preceding the appointed day, furnished by him under the existing law in such manner as may be prescribed:"

Procedure for manner of taking the credit and other points such as status of excess credit available etc. at yet to be prescribed. We have to wait till such presciption is notified by the Government.

AI Summary

Input Credit Adjustment for Importers on CVD and SAD Under GST: Section 140(1) CGST Act 2017 Explained A query was raised regarding the adjustment of input credit for importers under the Goods and Services Tax (GST) framework, specifically concerning the input credit of Countervailing Duty (CVD) and Special Additional Duty (SAD) on closing stock as of June 30, 2017. The applicable GST rate is 12%. A response highlighted Section 140(1) of the CGST Act, 2017, which allows registered persons to carry forward CENVAT credit to their electronic credit ledger. However, the procedure for claiming this credit is yet to be prescribed by the government.