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

Transitional GST credit may require passing benefit to recipients when claimed without invoice evidence under prescribed conditions.
Transitional credit under Section 140(3) may be allowed where invoice evidence of central duty is absent, but such claims are subject to prescribed conditions, limitations and safeguards and require that the taxable person pass on the benefit by way of reduced prices; the TRANS 2 deemed credit mechanism may apply and can be limited, so claimants should maintain stock records, reconcile purchases, follow prescribed rates and document that benefits were passed to recipients.