REVERSAL OF TRAN CENVAT CREDIT

[Sadanand Bulbule]

Dear experts

1] Whether the taxpayer engaged in the supply of works contract services need to reverse 'un-availed CENVAT' credit landed in the ITC ledger as provided under Section 140, in the event of obtaining the Occupancy Certificate or Completion Certificate' under Section 5[b] of Second Schedule to the CGST Act?

2] Whether such CENVAT credit under Section 140 automatically takes the legal form of 'Input Tax' as prescribed under Section 2[62]in the absence of any inward supply of services or goods or both under the CGST Act, irrespective of requirement of reversal of ITC under Section 17[3]?

Plz pour thoughts.

AI Summary

Debate on Reversal of Unavailed CENVAT Credit Under CGST Act Section 140: Implications and Taxpayer Rights Discussed A taxpayer engaged in works contract services queried about the reversal of unavailed CENVAT credit under Section 140 of the CGST Act upon obtaining an occupancy or completion certificate. The discussion involved whether such credit automatically becomes 'Input Tax' under Section 2(62) without inward supply, and its reversal under Section 17(3). Experts debated the implications of Section 140 and relevant GST provisions, referencing a Gujarat High Court ruling supporting the taxpayer's position. The consensus leaned towards no reversal being required for transitioned CENVAT credit, advocating for taxpayer rights and potential refund claims under specific circumstances.