Transitional Credit u/s 140 of GST Act

[THYAGARAJAN KALYANASUNDARAM]

Dear Experts,

One of my client's executing works contract in Tamil Nadu and had been paying taxes u/s 5 of TNVAT Act,2006. Further, he has huge credit of WCT TDS under the erstwhile act which could be adjusted only upon liability arises at the time of filing the return under the TNVAT Act,2006 after exhausting the Input Tax Credit.

As per the GST Act, we can carry forward the credit which is reflecting in the june,2017 and transfer through filing TRAN-1 return, whereas TDS credit apart from excess ITC the said WCT TDS was not reflected.

However, the client was availed the legitimate credit through TRAN-1 which has been objected by the State authority and issued a notice to the client. Since, the Tamil Nadu Sales Tax authority has created and design the Website which was convenient for them on the contrary my client is suffering and the working capital is blocked.

Now, im decided to file a writ petition before the high court of madras to defend this issue.

Could any experts give opinion on this and also share if any citation on this.

Thanks in Advance.

AI Summary

Client Faces Issues with Transitional Credit Under GST Act; Experts Suggest CENVAT Credit Should Not Lapse Due to Procedure A client executing a works contract in Tamil Nadu faced issues with transitional credit under the GST Act. The client had a substantial credit of WCT TDS from the TNVAT Act, 2006, which was not reflected in the GST TRAN-1 return, leading to an objection and notice from the State authority. A writ petition was filed in the Madras High Court, but the judge directed the authority to pass an order, leaving the client waiting for a resolution. Experts suggested that CENVAT credit should not lapse due to procedural issues, and alternative remedies, such as appealing, were considered.