Issue related to cenvat credit

[Hemant Kumar]

Dear All,

Greetings!!!

I have filed the bill of entry in the customs in the month of June before GST. Consignment was arrived ar ICD in the last week of July because of floods in Gujarat. I have lifted the consignment in the first week of August. Can we take the cenvat credit of CVD and additional duty? What is the last date for taking cenvat credit against old provision? I shall be very thankful to you if you provide us any notification or public notice in this regard.

Your cooperation in this regard shall be highly appreciated.

Thanks & Best regards,

Hemant Sharma

[Rajagopalan Ranganathan]

Sir,

Have you paid CVD and Additional duty at the time of filing the bill of entry? Since you have lifted the consignment from Customs custody in August 2017 you are liable to pay integrated goods and service tax (IGST). Therefore please clear the above points. However if you pay IGST you can take the credit and utilise the same while supplying the imported goods as such or use them in the course of or furtherance of your business.

[Ganeshan Kalyani]

If IGST is paid in the month of August 2017 then the same should be shown and credit to be claimed in the month of August 2017.

[Hemant Kumar]

Dear Sir,

I have paid the duty through MEIS on 29.06.2017 before GST. File was assessed on 29.06.2017 by customs (My mean to say file assessment was done on 29.06.2017). What is the process to take cenvat credit of CVD and additional duty?

I have paid the duty in the following way.

Basic Duty = 2.50 %

CVD = 12.50 %

C.cess: 2%

C.ecess:1%

additional Duty: 2%

Your immediate reply in this regard shall be highly appreciated.

Thanks & Best regards,

Hemant Sharma

[Vamsi Krishna]

It is understand that custom duty (includes CVD & AD) were paid in Jun'17.

In this case you can carry forward CVD&AD in Tran-1. The goods lying at port are part of your closing stock.

Book Custom duty entry in Jun'17 and carry forward in ruturn and Tran-1 both.

AI Summary

Cenvat credit carryforward: pre-GST customs duties can be preserved via TRAN-1; IGST paid on clearance may be claimed as credit. Where customs duties including CVD and additional duty were paid before GST commencement but goods were cleared after GST, taxpayers should record the duty payment in the pre-GST period, treat the goods as closing stock, and carry forward the duties in TRAN-1; if IGST is paid on clearance after GST, that IGST may be claimed as input tax credit and utilised in business.