INPUT CREDIT IN TRANSITION

[Kamdev Senapati]

Sir,

We have manufacturing Crayons which fall under chapter heading no 96099090/96091000, before GST we are cleared goods under notification 01/2011, excise duty @2% without availing input credit.

Now After GST, Shall we get the credit on the stock available as on 30/06/2017 as the excise documents also available with us.

Shall we show the credit of the same in TRANS-1

Kindly Suggest...

[KASTURI SETHI]

Not admissible.

[KASTURI SETHI]

Even after payment of duty of 1 % 0r 2 %, these goods were treated as exempted goods.

[Himansu Sekhar]

The credit which is not allowable under the existing law is also not allowable under the gst act.

[Kamdev Senapati]

Thanks !!!

[CSSANJAY MALHOTRA]

Sh. Kamdev ji,

In reference to your query, please note that if your FG Crayons is chargeable to GST from 01.07.2017, then you are eligible to claim ITC on RM in stock, RM contained in WIP & FG. The same needs to be shown in TRANS-1 (col 7A).

Hope the above resolves your query and the action step shall be taken accordingly.

Do update your profile to have better access to your concerns.

 

 

 

[Himansu Sekhar]

I amend my views. If the documents are available, credit on stocks is available.

AI Summary

Input tax credit on transitional stock - claimable if goods are taxable under GST and supporting excise documents exist. Transitional input tax credit on stocks is claimable where finished goods are taxable under GST from the transition date; eligible credits for raw materials, inputs in WIP and finished goods must be declared in TRANS 1 (column 7A). Availability of supporting excise documentation evidencing prior duty payment or credit entitlement is essential; initial contrary advice treating previously exempt goods as ineligible was amended to allow credit where such documents exist.