Entitlement of Transitional Credit

[SUBRATA RAY]

RTP was dealing with MRP goods such as vetenary drugs during VAT regime and suffered tax on first point of sale in the State and subsequent sales were not subjected to tax in the state under erstwhile law but liable to tax under gst whether the RTP is eligible to take credit of input tax suffered in his electronic credit ledger as per S.140(3) by filing TRANS 2

AI Summary

Eligibility for Transitional Credit on Veterinary Drugs under GST: Supreme Court Clarifies TRANS-2 Filing Process A query was raised regarding the eligibility of a registered taxpayer (RTP) dealing with veterinary drugs to claim transitional credit under GST for input tax paid during the VAT regime. The response explained that veterinary drugs were subject to Central Excise duty and deemed credit was allowed for stock held as of July 1, 2017, subject to filing a declaration in TRANS-2. The Supreme Court's order allows filing TRANS-2 based on statutory records, and the common portal is open for submissions. The retrospective proviso should not hinder filing, and any aggrieved registered assessee is eligible.