Credit transfer documents

[THYAGARAJAN KALYANASUNDARAM]

Dear expert,

I gone through the amendment in cenvat credit rules, regarding the credit transfer document. . Any one confirm, whether my understanding is correct or not.

Every dealer who procured the goods before the appointed day(i.e respect to within one year immediately preceeding the appointed day) and having the closing stock and each items value exceeds rs. 25k should get credit transfer documents from the manufacturers within 30days from the appointed day and will be submitted within 60 days from the appointed day and shouldl be mentioned the CTD reference no. In all our supply invoices with respect to the particular stock.

Thanks in advance.

[DR.MARIAPPAN GOVINDARAJAN]

A manufacturer who was registered under Central Excise Act, to evidence payment of duty of excise paid on goods manufactured and cleared by him under an invoice before 01.07.2017 may issue the credit transfer document to a person who was not registered under the Central Excise Act, but is registered under GST regime and is in possession of such manufactured goods held in stock on the such date.

The value of the goods for which CTD issued is more than ₹ 25,000/- per piece;

The goods shall bear the brand name of the manufacturer or the principal manufacturer and are identifiable by a distinct number such as chassis or engine number of a car.

The CTD shall be issued within 45 days from 01.07.2017. and copy of the corresponding invoices shall be enclosed with it.

[THYAGARAJAN KALYANASUNDARAM]

Dear sir,

Thanks for your valuable reply. Can you explain what kind of Goods, it is only a consumer products?

Example:

One of my client dealers of industrial products which will be supplied subsequently to the manufacturers, and if he procured those goods from the manufacturers prior to 01.07.2017 i. e. Between 01.07.2016 and 30.06.2017, he shall get the CTD from the manufacturers?

As per sec 140 of cgst act if the dealer possess the copy of Invoice which shows Excise duty separately can claim entire excise duty and again we have to get CTD in this case.?

Sir could you please elaborate on this.

Thanks in advance.

[MUKUND THAKKAR]

Sir,

If your client is registered as a dealer in excise need to require any CTD. he has eligible to take credit thru TRN-1. this provision is made for goods likes car/ fridge/ TV/ washing machine..etc not for other product.

[THYAGARAJAN KALYANASUNDARAM]

Dear sir,

Thanks for your valuable reply.

AI Summary

Credit transfer documents permit transition of excise-paid, identifiable branded goods into GST credit subject to specified conditions. A manufacturer who cleared goods under central excise before the appointed day may issue a credit transfer document to a GST-registered person holding those goods in stock on that date, with copies of corresponding invoices enclosed. The mechanism is confined to identifiable, branded goods and is subject to a short prescribed issuance period. Transfers are unnecessary for persons already registered under central excise, who may claim transitional credit through the designated transition procedure instead.