thanks sir for your replies. we registered grievance on following points .
1. The above notification in exercise of powers conferred by clause (2) of sub section 3 of section 54 only permits to notify the supply of goods and services in respect of which refund shall not be permitted the power is limited to decide coverage of commodities and services for the purpose of refund accumulated credit .The section 54 does not empower to lapse any kind of ITC, even any word like lapse is not used in the above section.
2. We have paid value for the accumulated gst in cash, it’s our current asset and part of our working capital, so it is our right to utilize the same in future for discharging our output tax liabilities, so it should not be lapsed.
3. Value of GST is not included in cost of goods hence we have paid income tax also for the accumulated gst for 17-18.If it is lapsed now it will Impact on accounting and profitability.
4. The period of duty accumulation was 01/07/17 to 31/07/18 and during the period of accumulation right to utilize the surplus duty was available so during the said period while paying value for accumulated gst it was understood that we can utilize it in future. But after we paid value for it suddenly the said notification lapsed it.it’s not a justice. Notification should be issued prior to effective date and effective date should be a date in future but the said notification is effecting past period that’s not appropriate.
5. We have input credits form goods, services, capital and inverted duties as the law doesn’t require HSN wise GST accounting hence it’s impossible to find out which one is utilized and which one is surplus. Let us see it by the following examples
Example 1.
There are two assesses A and B both have inverted itc A have utilized the same in the said period so he have nothing to lose but B did not utilized it hence he have to lose the accumulated gst, it’s not fair with B because both a and b have inverted duty but only b is losing his itc due to accumulation but a have nothing to lose because he utilized his itc. The base of laps should be inverted duty instead of accumulation.
Example 2.
C who have inverted duty and utilized it till month of june 18,and he have input credit from capital goods in july18 then according to formula given he have to lapse itc out of capital inputs, because lapse itc is calculated for the period 01/07/18 to 31/07/18.
6.There is a huge confusion due to this notification union finance minister shri piyush goyal sir told to traders that the government has no intentions to lapse the credit, but they are just blocking refunds on accumulated gst up to 31/07/18, but it’s being lapse by the notification and clarification.
AI Drafter 
TaxTMI 
TaxTMI 
TaxTMI 
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