Transitional credit of WIP

[Rajesh Kumar]

Audit of the builder was conducted, they made a para that they have transferred more itc then available in their stock as on 01.07.2017. On 01.07.2017 builder shown some inputs as WIP . So audit is being rejected the itc proportional to the input were WIP

is ITC of WIP was not available for trans1?

AI Summary

Transitional input tax credit: builders may claim ITC on inputs and work-in-progress if statutory conditions are met.
Transitional input tax credit under Section 140(6) extends to inputs and inputs contained in semi-finished or finished goods held in stock, including work-in-progress, provided the inputs are for taxable supplies, the claimant is not a composition taxpayer, is otherwise eligible for ITC, possesses invoices or prescribed documents evidencing duty payment under the previous law, and those documents were issued within twelve months preceding the appointed day.