TaxTMI 
TaxTMI 
Cenvat credit on bicycle
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....envat credit on bicycle<br> Query (Issue) Started By: - manish kumar Dated:- 29-8-2018 Last Reply Date:- 3-9-2018 Central Excise<br>Got 7 Replies<br>Central Excise<br>Dear sir, Thanks for reply of my previous curies. Now I am present here with a new query. If a dealer has purchased bicycle under exemption from an area based central excise exemption in excise regime. Then in GST regime he has tak....
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....en credit on above said goods with some provision . Now he supplied bicycle after utilising such CENVAT credit. Can we allow such CENVAT credit availment & utilisation ..Please also explain on which ground he has taken Cenvat credit on bicycle ? Reply By KASTURI SETHI: The Reply: In pre-GST era, Central Excise duty was levied on "manufacture" and now GST is levied on supply whether sup....
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....plied by manufacturer or dealer. Though bicycles were under area based exemption. In GST regime, bicycle and bicycle parts attract GST @ 12% under HSN 8712 and 8714 respectively. Now there is no one to one correlation. ITC is to be used for taxable supply of goods or services in the course of business or furtherance of business. So answer to your query is 'yes'. Other experts may also int....
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....ervene on this issue. Reply By manish kumar: The Reply: Sir, but The said dealer has purchased bicycle from excise expemtion area where no any excise duty has been paid . Then how can he take credit. Has there any provision ? Reply By DR.MARIAPPAN GOVINDARAJAN: The Reply: Under which provision he has taken credit for the bicycle that is purchased from exempted regime? Reply By MUKUND THAKKAR:....
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.... The Reply: please refer sec 139-142 you will get it idea for availment of cenvat credit and Utilization of credit. Reply By Ganeshan Kalyani: The Reply: If tax component was there in the Item while purchase then only credit is allowed. Otherwise also which credit the querist is asking need clarification. Reply By KASTURI SETHI: The Reply: Sh.Mukund Thakkar Ji, With reference to your reply....
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.... dated 30.8.18, you have reached at proper place. Reply By KASTURI SETHI: The Reply: Sh.Manish Kumar Ji, Pl.refer to your cross query dated 29.8.18. Bicycle purchased under area based exemption scheme before 1.7.17 . That said stock of bicycle stock ceased to be exempted from 1.7.17. In your query you have mentioned, "the dealer has taken credit on above said goods" What do you ....
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....mean by the phrase, " about the above said goods " ? Pl. specify. Such specified query has also been raised by Sh.Ganeshan Kalyani Ji.<br> Discussion Forum - Knowledge Sharing ....