Just a moment...

Top
Help
🎉 Festive Offer: Flat 15% off on all plans! →⚡ Don’t Miss Out: Limited-Time Offer →
×

By creating an account you can:

Logo TaxTMI
>
Call Us / Help / Feedback

Contact Us At :

E-mail: [email protected]

Call / WhatsApp at: +91 99117 96707

For more information, Check Contact Us

FAQs :

To know Frequently Asked Questions, Check FAQs

Most Asked Video Tutorials :

For more tutorials, Check Video Tutorials

Submit Feedback/Suggestion :

Email :
Please provide your email address so we can follow up on your feedback.
Category :
Description :
Min 15 characters0/2000
Add to...
You have not created any category. Kindly create one to bookmark this item!
Create New Category
Hide
Title :
Description :
+ Post a Query
Post a New Query
Title :
0/200 char
Description :
Max 0 char
Category :
Delete Reply

Are you sure you want to delete your reply beginning with '' ?

Delete Issue

Are you sure you want to delete your Issue titled: '' ?

Discussion Forum

Back

All Issues

Advanced Search
Reset Filters
Search By:
Search by Text :
Press 'Enter' to add multiple search terms
Select Date:
FromTo
Category :
OR
Search by Issue ID:
NOTE: If you have inputs in both the fields, then results will be shown for issueId first.
Issue ID :

transitional credit.

priyesh agrawal

BACKGROUND

The assessee is dealing in extracting oil from cotton seed. earlier in VAT both oil and cotton seed cake were taxable but due to rate differences, they have a huge amount of credit lying in their stock in VAT regime.

ISSUE

in GST cotton seed oil cake is exempt as is used as cattlefeed. so if we carry the credit under sec 140(1) to GST will we be allowed to carry whole credit or has to reverse proportionate credit.

Further what will happen if credit is in excess of the tax paid on the stock lying on 30.06.2017(eg: input credit is of 15 lac, but tax paid on stock lying as on 30.06.2017 is of ₹ 5lac only.)

Oil Extraction Business Faces Transitional Credit Issues Under GST: Section 140(1) and Exempt Goods Clarified A discussion on transitional credit under GST involved an oil extraction business from cotton seeds facing issues due to the exemption of cotton seed oil cake under GST, which was taxable under VAT. The query revolved around whether the entire VAT credit could be carried forward or if a proportionate reversal was necessary. Various participants highlighted the provisions of Section 140(1) of the CGST Act, the applicability of notifications, and the distinction between taxable and exempt goods. The consensus was that if the final product is exempt, the credit must be reversed. However, if taxable supplies are involved, proportionate reversal applies. (AI Summary)
answers
Sort by
+ Add A New Reply
Hide
+ Add A New Reply
Hide
Recent Issues