TRANSITIONAL CREDIT

[THYAGARAJAN KALYANASUNDARAM]

Dear Expert,

We need clarification on the transitional credit.

Mr. A provider of service under pre-gst and he purchased Capital Goods in March' 2017 and he files his monthly returns only as exempted sales as labour charges and also he claims 50% tax on capital goods in the financial year 2016-17 and balance 50% claimed through tran-1 and utilised in GST regime after implementation of GST Act.

further, after implementation of the GST he collects GST on the supply of service w.e.f. 1st July 2017 and discharged to the govt. exchequer promptly.

Query.

1. Whether he eligible to claim the 50% input under VAT regime.

2. Whether it can be carry forward under GST regime.

Please advice me. Thanks in Advance.

[Alkesh Jani]

Sir,

The time limit of TRANS-1 is already gone. if the same amount is reflected in your VAT Returns, and if your claim is not time barred, apply for refund.

Further, if the amount is huge, File writ before Hon'ble High Court.

Thanks,

With Regards

[Himansu Sekhar]

If you have not claimed, you are not eligible to claim the same now. Refund is also not permissible.

AI Summary

Transitional credit eligibility depends on prior VAT claim; late transitional filings are barred and refund or writ options are limited. Transitional credit for pre GST capital goods depends on whether input tax was claimed in VAT returns and on compliance with transitional filing deadlines; if claimed within time a refund route may be available, but omitted or late transitional filings are generally not admissible and ordinary migration is barred, leaving limited extraordinary remedies.