Transitional Credit

[R N Desai]

Respected experts,

We had purchased certain inputs in the month of June, 2017.

The inputs were received and consumed in the same month.

The bills were raised by the supplier in the month of June, 2017 but were received and accounted in July, 2017.

We claimed Cenvat Credit in GST TRAN-1 which was filed within the stipulated time.

The Department is proposing to dis-allow the same on the ground that we should have claimed it in the monthly return of June, 2017. Transitional provisions are not attracted when input are received and consumed in the pre-GST regime.

Similar is the situation for services received and consumed in June, 2017.

Please give your valued views.

AI Summary

Debate on Cenvat Credit claim timing under GST transitional rules; experts argue documentation and timing are crucial. A business sought advice on claiming Cenvat Credit for inputs and services received and consumed in June 2017, with invoices received in July 2017, under GST transitional provisions. The tax department proposed disallowing the credit, arguing it should have been claimed in the June 2017 return. Experts in the forum debated the issue, noting procedural discrepancies and the timing of invoice receipt. Some experts suggested that despite procedural lapses, the credit should not be denied if the transaction is genuine, and litigation might be necessary to resolve the issue. The discussion highlighted the importance of documentation and timing in such tax matters.