ITC from Pre gst regime

[SANTOSH PATIL]

A Composition dealer in vat, can he claim ITC on stock held on 1st july 2017. Dealer has opted for regular scheme in gst. Department had rejected ITC 01 stating he was a composition dealer and cannot claim input tax on stock.held.

[KASTURI SETHI]

Have you followed proper procedure regarding withdrawal from composition scheme as dealer ? Form GST CMP-04 was required to be filed.

[Shilpi Jain]

While transiting registration under gst you must have selected regular dealer. Also, this credit must have been taken in TRAN-1

[KASTURI SETHI]

Dear Querist,

If you want fool-proof reply, pl. disclose full and true facts otherwise it will be treated that you are not interested.

AI Summary

Input tax credit entitlement depends on compliance with composition withdrawal and claiming transitional credit via prescribed migration forms. Entitlement to transitional input tax credit on pre-GST stock by a dealer moving from the composition scheme to the regular scheme depends on completing withdrawal formalities from composition, ensuring migrated registration shows regular status, and claiming the credit through the prescribed TRAN mechanism; failure to follow these procedural steps may lead to rejection of the credit by tax authorities.