TRANS-1 CREDIT ISSUE

[ABHILASH PANICKER]

Dear Sir/Madam,

My query related to Trans-1 Credit, as per the audit observations made by the officers of GST they pointing out the following discrepancies.

1) As per the Trans-1 uploaded by the taxpayer, 100% credit on some capital goods ( Only 3 Invoices ) has been claimed, whereas the provisions and explanation allows only "unclaimed balance amount". Thus, Availing of 100% credit on capital goods in Trasn-1 was irregular.

2) Credit in table RCM paid tax challans been claimed wherein the services was rendered by the supplier in prior to implementation of GST and tax was paid after appointment date. e.g. RCM Tax # paid in 6th July 2017, related to June 17 credit claimed in TRANS-1 was not correct as per the provisions.

Need advise to given reply.

Regards

AI Summary

Transitional input tax credit eligibility affirmed for capital goods and reverse-charge payments under transitional provisions.
Transitional entitlement preserves unavailed CENVAT credit on capital goods: the pre-GST fifty percent restriction applied only in the year of receipt and the balance could be claimed subsequently, so TRAN-1 claiming of the remaining credit is supportable where the credit was admissible under prior law. Similarly, credit for reverse-charge taxes paid after the appointed day for services rendered earlier is claimable when payment and entitlement align with Point of Taxation rules and transitional provisions; tribunal decisions and circulars support reading transitional provisions with existing Cenvat and Point of Taxation rules.