CLOSING STOCK OF LUMPSUM GOODS AS ON 30.06.2017

[NAREN KHATRI]

RESPECTED SIR/S..

HAVE SOME CLOSING STOCK OF GOODS PURCHASE FROM LUMPSUM TRADERS. ALSO HAVING BILLS BUT VAT NOT SHOWN IN BILL SEPARATELY.

WHICH TYPE OF CREDIT AVAILABLE IN TRAN FORM, FULL VAT CREDIT OR DEEMED CREDIT..

FURTHER WHICH TRAN FORM SHOULD BE USED TO AVAIL TRAN. CREDIT.

THANKING YOU ..

[Himansu Sekhar]

Deemed credit. Information to be put in both tran 1 and 2 forms.

[Ganeshan Kalyani]

In my view deemed credit is for excise. For Vat full credit is eligible .

[KASTURI SETHI]

Trans 1 is for those who are already registered under VAT or Central Excise. For newly registered Trans 2 is to be filled. If you have invoices and paid VAT or Central Excise, you would get full credit othrrwise 40 % as deemed credit to be allowed by the department after uploading TRANS 1or TRANS 2.

[Himansu Sekhar]

Deemed credit can be both for vat and excise.

[KASTURI SETHI]

Yes. Himanshu Ji.

[DR.MARIAPPAN GOVINDARAJAN]

I endorse the views of Shri Sethi.

[Ganeshan Kalyani]

Sir, i have not come across the quantum of Vat credit allowed on closing stock as on 30th June 2017 . If a person was registered under VAT he can carry forward the excess VAT shown in return by declaring the same in GST TRAN 1. And if the person was unregistered, then i would like to know the deemed credit percentage .Thanks.

AI Summary

VAT credit on closing stock: claim depends on invoices and registration; use TRAN 1 or TRAN 2 for transitional credit. Eligibility for input tax credit on closing stock purchased from lump-sum traders depends on invoices and prior registration. If invoices show VAT or excise paid, full VAT credit may be carried forward by declaring it in TRAN 1 (for previously registered taxpayers) or TRAN 2 (for newly registered taxpayers). If VAT is not shown or not demonstrably paid, a deemed credit-identified in the discussion as a departmental allowance of a percentage after uploading TRAN 1 or TRAN 2-is likely applicable, though contributors differ on whether deemed credit relates solely to excise or also to VAT.