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.
Excess ITC from Local Purchases Can Be Carried Forward in GST Transition via TRAN-1 Form, Refund Not Allowed. An individual inquired about handling excess Input Tax Credit (ITC) during the transition from the previous tax regime to the Goods and Services Tax (GST) system. The query focused on whether excess ITC from local purchases taxed at 14.5% could be carried forward or refunded when selling interstate at 2% CST. The response clarified that the excess credit could be carried forward if declared in the TRAN-1 form, provided all conditions are met, but a refund is not permitted. (AI Summary)
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