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 transition: entitlement to carry forward CENVAT credits into electronic ledger pending prescribed procedure. Registered persons other than composition taxpayers may carry forward CENVAT credit into the electronic credit ledger under the CGST Act transition provision; the manner and procedural rules for claiming and applying those carried-forward credits, including the adjustment of legacy import duties on closing stock, are not yet prescribed and await government notification.