TaxTMI 
TaxTMI 
we had a balance of central excise credit which we carried forward in CGST in the TRANS -1 form. We did not utilize the CGST balance due to an ongoing litigation in the matter. Eventually , we reveresed the CGST credit in GSTR- 3B. Now the department states that we will have to pay the whole credit in cash as ongoing credit cannot be considered due change in regime from central excise to GST... Please guide.
transitional credit carried forward in gst
13 Jun 2019 
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Transitional credit reversal: reversal may denote non utilisation, but recovery follows electronic ledger adjustment procedures.
A registrant reversed carried-forward transitional credit in GSTR-3B during litigation; forum contributors argue reversal denotes non-utilisation and avoids double payment, while administrative Circular guidance mandates recovery of wrongly carried transitional credit as a central tax liability payable through the electronic credit or cash ledger and recorded in Part II of the electronic liability register (FORM GST PMT-01). (AI Summary)
A registrant reversed carried-forward transitional credit in GSTR-3B during litigation; forum contributors argue reversal denotes non-utilisation and avoids double payment, while administrative Circular guidance mandates recovery of wrongly carried transitional credit as a central tax liability payable through the electronic credit or cash ledger and recorded in Part II of the electronic liability register (FORM GST PMT-01). (AI Summary)