input on existing stock

[Ramprasad Jangir]

what input 40%/60% is given by gst on 30.6.17 stock ,on value of stock as on 30.6.17 or output gst from sales of existing stock

[KASTURI SETHI]

If you have not invoices but have stock, Govt. will not allow full credit. Records will be examined before allowing ITC finally. This 40/60 % both are povisional.

[CSSANJAY MALHOTRA]

output GST.

[KASTURI SETHI]

Agreed Sir. I was off the track.

[KASTURI SETHI]

Sir, It was insightful question by the Querist.Otherwise assessees are committing Himalayan blunders by availing ineligible ITC. Pandora's box will be opened for them in 2019 ! I mean to say a flood of SCNs.

[Alkesh Jani]

Sir, I agree with the expert as many are still not aware of filing 3B returns and are not reversing the ITC. Instead availing all the credit. If assessee will not pay penalty but will not escape from Interest I guess.

With regards

[KASTURI SETHI]

Yes Assessees are victims of temptation of RS.500/- per return.

AI Summary

Input tax credit on pre-GST stock: provisional allocation and records-based eligibility may trigger reversals and interest. Eligibility to claim input tax credit on stock as of 30.6.17 depends on documentary proof and adjustment against output tax on sales of that stock; absent invoices full credit will not be allowed, records will be examined, and the 40/60 split is provisional and subject to adjustment. Claiming ineligible credit exposes assessees to reversals, interest and potential show-cause notices, so returns and reversal obligations must be complied with and supporting records maintained.