Can the arrears of CST for pre-GST period be paid through ITC register

[Rangaswamy R]

As per April 2018 circular, arrears of central excise and service tax can be paid through ITC register. similarly arrears of VAT, entry tax, Luxury Tax of Karnataka can be paid through ITC register. Can the arrears of Central Tax Act arising out of assessment finalization in February 2020 for pre-GST period be paid through ITC register?

AI Summary

Debate on Using Input Tax Credit for Pre-GST Central Sales Tax Arrears Payment Under Transitional Provisions A forum discussion centers on whether arrears of Central Sales Tax (CST) for the pre-GST period can be settled using the Input Tax Credit (ITC) register. A 2018 circular allows arrears of central excise and service tax to be paid through the ITC register, but it does not explicitly address CST. Participants debate the applicability of transitional provisions under the Central Goods and Services Tax Act, 2017, which include definitions and procedures for recovering arrears. The discussion highlights differing interpretations of the law, with some suggesting that CST arrears can be paid using electronic credit ledger balances, while others advise checking specific circulars or notifications for clarity.