Process of availment and utilisation

[madhavvan n]

new co does not have st / excise regn however has huge input tax can it avail and utilise credit at a later date what is process first availment and thereafter utilisation or only availment is ok to keep claim live

AI Summary

Cenvat credit availment: registration during unit setup allows claiming and later utilisation when taxable activity begins.
Cenvat credit can be availed during the setting-up period if the entity obtains registration (with a covering letter indicating the purpose) and may be utilised later when commercial production or taxable services commence; entities operating under an exemption that precludes credit cannot claim cenvat on inputs or input services.