excess VAT

[THYAGARAJAN KALYANASUNDARAM]

Dear expert,

As per sec 140(1) of GST act says, any excess ITC under the existing regime will be carry forward to GST regime. Whereas under existing regime, we buy the goods locally @14.5% and sells it as interstate trade @2% CST against form c, so we have huge excess ITC.

My query my client having huge excess credit till June 2017, when I'm filing July return under GST regime, whether can I carry forward or apply refund under existing regime, it is possible?

Thanks in advance.

[Himansu Sekhar]

You can carry forward the credit as equal to the cb of the last return provided you declare the same in tran 1 form and fulfilling other conditions. No refund will be allowed.

AI Summary

Excess Input Tax Credit carry forward permitted under GST; declare closing credit in TRAN 1 to continue, refund not available. Excess input tax credit under the pre GST regime must be carried forward into GST by declaring the closing credit balance in Form TRAN-1 and meeting transitional conditions; refund of such excess credit under the existing regime is not available.