Input Tax Credit

[Asked by Guest]

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.

[MUKUND THAKKAR]

Dear,

you are eligible to take input tax credit what ever stock your hand on 30.06.2017 subject to following condition.if you are registered in VAT.

Trader registered under VAT
Return filed under VAT shows outstanding/ excess/ unutilised balance of input tax
credit
 The excess input tax credit reflected in the return to be carried forward under GST
 GST FORM TRAN-1 to be filed by 29th August 2017
 The GST FORM TRAN-1 to contain details about the credit to be carried forward
 Excess VAT Credit (shown in VAT Return) shall be carried forward as SGST
The balance is not allowed to be carried forward in following cases:
 The Credit is not admissible in the GST Law
 All returns for 6 months have not been duly filed under the VAT law
 Credit attributable to claims related to sales under Form C, F, E1, E2, H etc. not to be
allowed unless the forms are duly made available
Return filed under VAT does not show excess balance of input tax credit
 No credit shall be carried forward under GST in respect of VAT
Excise duty, Additional Excise Duty, CVD and SAD in respect of stock held on 30th
June 2017 –
 Duty paying documents/ invoices are available
 Credit of Excise and other related duties allowed (subject to few conditions)
 Date of issue of such invoice must be on or after 1st July 2016
 GST FORM TRAN-1 to be filed by 29th August 2017
 The GST FORM TRAN-1 to contain details about the credit claimed
 The GST FORM TRAN-1 to contain details about the stock held on 30th June 2017
 Credit shall be carried forward as CGST
 Duty paying documents/ invoices are not available
 Credit of Excise and other related duties allowed (subject to few conditions)
 Credit allowed @ 40% of CGST applicable on supply of the stock after 1st July 2017
 Credit allowed in respect of supplies made till 31st December 2017
 Documents for procurement of the goods are essential
 Goods should not be exempt from excise or nil rated
 GST FORM TRAN-1 to be filed by 29th August 2017
 Credit shall be carried forward as CGST

 Statement containing details of supplies to be submitted each month for 6 months

The GST FORM TRAN-1 to contain details about the stock held on 30th June 2017

AI Summary

Input tax credit on pre-GST stock transferable via transitional form, subject to prior tax return position and documentary proof.
Traders registered under VAT may carry forward excess VAT input credit shown in VAT returns by filing Form TRAN-1 within the transitional window, with such VAT credit mapped as SGST. Credit is disallowed if not admissible under GST, if required VAT returns for the prior period are not filed, or if the VAT return does not show excess balance; concessional-form-backed sales credits are transferable only when those forms are produced. Central duties (excise, CVD, SAD) on stock may be carried forward as CGST with duty-paying invoices dated on or after the antecedent cutoff; absent invoices, a restricted proportionate CGST credit for supplies within a limited period may be claimed, subject to documentation and TRAN-1 filing.