Cenvat credit on bicycle

[manish kumar]

Dear sir,

Thanks for reply of my previous curies.

Now I am present here with a new query. If a dealer has purchased bicycle under exemption from an area based central excise exemption in excise regime. Then in GST regime he has taken credit on above said goods with some provision . Now he supplied bicycle after utilising such CENVAT credit. Can we allow such CENVAT credit availment & utilisation ..Please also explain on which ground he has taken Cenvat credit on bicycle ?

AI Summary

Can CENVAT Credit Be Used for Bicycles Bought Under Exemption Before GST? Understanding ITC Rules and Provisions. A discussion on a forum revolves around the eligibility of CENVAT credit for bicycles purchased under an area-based central excise exemption before the GST regime. The original query asks if CENVAT credit can be utilized in the GST regime when the bicycles were initially exempt from excise duty. Responses clarify that in the GST era, bicycles are taxed at 12% and that input tax credit (ITC) is applicable for taxable supplies. However, confusion persists about whether credit can be claimed for goods purchased under exemption, with suggestions to refer to specific GST provisions for clarity.