TaxTMI 
TaxTMI 
TaxTMI 
transitional credit carried forward in gst
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....ransitional credit carried forward in gst<br> Query (Issue) Started By: - Richa Goyal Dated:- 13-6-2019 Last Reply Date:- 15-6-2019 Goods and Services Tax - GST<br>Got 6 Replies<br>GST<br>we had a balance of central excise credit which we carried forward in CGST in the TRANS -1 form. We did not utilize the CGST balance due to an ongoing litigation in the matter. Eventually , we reveresed the CGST ....
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....credit in GSTR- 3B. Now the department states that we will have to pay the whole credit in cash as ongoing credit cannot be considered due change in regime from central excise to GST... Please guide. Reply By KASTURI SETHI: The Reply: I do not agree with the department's view point. Once credit balance has been properly carried forward in TRANS-1, thereafter, no question of cash payment. You....
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.... have not mis-utilized in any way. Rather you have reversed the same due to ongoing litigation and this proves that you have acted in a bona fide manner. This is my view and interpretation. Reply By Ganeshan Kalyani: The Reply: The credit is not utilised by you. The reversal is as good as payment. Separate payment would mean double payment. I agree with Sri Kasturi Sir's view. Reply By KAS....
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....TURI SETHI: The Reply: "Credit reversed amounts to credit not taken".It has been held by a plethora of Courts. One case law based on the judgement of Supreme Court, various High Courts is appended below:- 2017 (358) E.L.T. 825 (Tri. - Ahmd.) = 2017 (4) TMI 217 - CESTAT AHMEDABAD COMMISSIONER OF C. EX. & S.T., SURAT-II Versus ATUL LTD. ​​​​​​​T....
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....hough above case laws pertain to pre-GST period, these are equally relevant and applicable to the GST regime. Recently, I have read a case law on this issue pertaining to GST regime which will take time to trace out. Reply By CSSANJAY MALHOTRA: The Reply: Please go through Circular No. 42/2018 CGST dated 13.04.2018 4.1 Recovery of central excise duty, service tax or wrongly availed CENVAT cred....
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....it thereof under the existing law and inadmissible transitional credit: (a) The CENVAT credit of central excise duty or service tax wrongly carried forward as transitional credit shall be recovered as central tax liability to be paid through the utilization of amounts available in the electronic credit ledger or electronic cash ledger of the registered person, and the same shall be recorded in Pa....
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....rt II of the Electronic Liability Register (FORM GST PMT-01). (b) The arrears of central excise duty, service tax or wrongly availed CENVAT credit thereof under the existing law arising out of any of the situations discussed in para 3 above, shall, unless recovered under the existing law, be recovered as central tax liability to be paid through the utilization of amounts available in the electron....
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....ic credit ledger or electronic cash ledger of the registered person, and the same shall be recorded in Part II of the Electronic Liability Register (FORM GST PMT-01). Reply By Richa Goyal: The Reply: Thanks a lot for your promt reply and guidance. I shall deal with the issue in the said manner Reply By KASTURI SETHI: The Reply: Sh.Sanjay Malhotra CS, Yes, Sir. Board's circular mentioned ....
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....by you is more relevant and forceful as compared to case laws pertaining to pre-GST era.<br> Discussion Forum - Knowledge Sharing ....