Input Tax Credit

[Mitul Patel]

I am a Trading concern who is a distributor of a reputed Italian Door and Window Hardware Manufacturer. The company has an India Office in Mumbai with a stock warehouse. They Import the hardware and bill it on CST 2% to my company and I maintain a stock at my warehouse. They pay the standard Customs + CVD + SAD on the imports but include everything in the final basic price invoiced to me. Only the CST is shown as a seperate tax in the invoice.

I will have a stock of around 50 lacs of this hardware on 1st of July. My question is very simple... will I get any ITC on this stock?? If yes, how much and on the basis of which document?? Any help on this issue will be greatly appreciated.

AI Summary

Trading Company Queries Input Tax Credit Eligibility on Pre-GST Stock; Must File GST FORM TRAN-1 by August 29, 2017 A trading company inquires about eligibility for Input Tax Credit (ITC) on stock held as of July 1, 2017, under the Goods and Services Tax (GST) regime. The response clarifies that ITC can be claimed if the trader is registered under VAT and has filed returns showing excess input tax credit. The excess credit can be carried forward under GST by filing GST FORM TRAN-1 by August 29, 2017. Conditions include availability of duty-paying documents and compliance with VAT filings. Credit is carried forward as SGST or CGST depending on the type of tax, with specific conditions for excise and other duties.