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

Taxpayer Eligible for GST Transitional Credit Despite Non-Migration and Procedural Lapses, Experts Affirm A taxpayer, who registered under the GST Act in August 2017 and was not automatically migrated from the previous tax regime, inquired about the eligibility to claim transitional credit. Despite not being a migrated taxpayer, all VAT and Service Tax returns were timely filed. Experts in the discussion affirmed that transitional credit should not be denied due to procedural lapses, referencing court decisions supporting this view. They concluded that the taxpayer is eligible for the credit, even if the department disputes the claim.