Transitional Credit- VAT to GST

[VIGNESH]

sir .during VAT regime i have paid advance tax under section 12 during 2017 January and as GST was implemented in July i just C/fd in Tran-1 and started set off against ITC payable, now the department is raising notice that i should apply only for the refund of excess tax under VAT and I should not setoff in GST. is that correct? can I prefer appeal?

[KASTURI SETHI]

Dear Sir,

Pl. let me know about Section 12 . Of which VAT Act ?

[VIGNESH]

s sir its under TNVAT!

[KASTURI SETHI]

Dear Sir,

Advance tax is always subject to final adjustment. In my view, the department is correct.

[ABHISHEK TRIPATHI]

Dear Vignesh,

Under which sub-section of section 140, querist has transitioned the VAT credits? So, the department is sayings instead of transition, the querist was supposed to file refund of excess tax under VAT?

This seems like a dispute of transition of credit. You establish that you have done the right transition under section 140 of the TN GST Act.

AI Summary

Transitional VAT credit dispute: tax authority challenges setoff in GST; taxpayer must establish valid transition under section 140.
Taxpayer carried forward advance tax paid under section 12 of the TNVAT Act in TRAN 1 and set it off against GST ITC liabilities. The department asserts excess VAT should have been refunded under VAT rather than transitioned and set off in GST. The central operative issue is whether the taxpayer correctly transitioned VAT credits under the applicable sub section of section 140 of the TN GST Act, or was required to claim a VAT refund.