Availing Trans Credit though not a migrated tax payer

[Deepak Bubna]

A tax payer has claimed Trans Credit though obtained registration under GST Act in August 17 and is not a migrated tax payer. Can his claim of carry forward such trans credit be denied ? All the returns (VAT/Service Tax returns) are in order and were filed within due date.

[Ganeshan Kalyani]

Transitional credit is allowed for the taxpayer who were registered in earlier tax regime. If you were registered then you would have migrated to this regime. One of the condition is that all six months return in pre-gst time should have been filed.

[KASTURI SETHI]

Cannot be denied. You were registered in pre-GST era.One of my clients was automatically migrated. Initially, all those who were registered in pre-GST era were automatically migrated and there was time limit to apply for anew registration in GST regime. I support the reply of Sh.Ganeshan Kalyani Ji.

[Deepak Bubna]

Thank you all for your responses. In present case, the tax payer was not migrated automatically and he obtained registration by himself , though on 17th Augusty 17. He was only registered under Service Tax and not under VAT Act.

[Shilpi Jain]

Taking a fresh registration under gst and not migrating from the existing service tax registration, at the most can only be a procedural lapse. There are high court decisions which state that procedural lapse should not deny carry forward of an eligible credit from the earlier regime.

you would be eligible and there is a good chance even if the department disputes

[Ganeshan Kalyani]

Yes the credit is eligible. I agree with the view of the experts.

[Deepak Bubna]

Appreciate with thanks time taken out by you all and sharing your views.

AI Summary

Transitional credit eligibility affirmed despite procedural migration lapse; eligible pre GST service tax credit remains claimable. Transitional credit claimed by a taxpayer who obtained fresh GST registration instead of migrating raises whether lack of migration bars carry forward of eligible pre GST input credit. Experts treat failure to migrate as a procedural lapse and indicate that, where pre GST registrations existed and returns were duly filed, such procedural defects should not preclude entitlement to transitional service tax credit.