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.

AI Summary

Dealer Denied Input Tax Credit Claim After Transition from VAT Composition to Regular GST Due to Status Issues A composition dealer under the VAT regime inquired about claiming Input Tax Credit (ITC) on stock held as of July 1, 2017, after transitioning to the regular GST scheme. The tax department rejected the ITC claim, citing the dealer's previous status as a composition dealer. Respondents advised ensuring proper withdrawal from the composition scheme using Form GST CMP-04 and selecting the regular dealer status during GST transition, possibly using TRAN-1 for credit. Complete and accurate disclosure of facts was recommended for a definitive response.