SEC 140 transitional credit

[giri gattupalli]

respected sir

whether, transitional credit availed under Sec 140 (3) (credit claim relates to goods held in stock on appointed day, covered by tax invoices evidencing payment of tax) should pass on to buyers or in other wards subjected to anti profiteering provisions, please discuss

thanking you

AI Summary

Understanding Transitional Credit Under GST Section 140(3) and Its Impact on Pricing and Anti-Profiteering Rules A user inquired about the applicability of transitional credit under Section 140(3) of the GST law, specifically whether it should be passed on to buyers under anti-profiteering provisions. Another participant clarified that if a registered person lacks invoices proving duty payment, they must pass on the credit benefit through reduced prices. The user further explained their situation involving a client dealing in MRF Tyres & Tubes, where VAT invoices were present but not central duty evidence. They sought advice on claiming input tax credit and precautions to avoid issues with the GST department. Another participant mentioned TRANS-2, indicating that deemed credit might not require documentary proof.