TaxTMI 
TaxTMI 
Tran 1 credit on goods procured under Notfn No. 1/2011
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....ran 1 credit on goods procured under Notfn No. 1/2011<br> Query (Issue) Started By: - Kavali Ramanjeneyulu Dated:- 24-9-2020 Last Reply Date:- 28-9-2020 Goods and Services Tax - GST<br>Got 4 Replies<br>GST<br>Sir, one taxpayer was manufacturing yarn by using Polyster Staple fibre . Polyster staple fibre i.e. input was attracting 2% duty under Notification No. 1/2011 CE . As on 30.06.2017 . Under ....
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....cenvat credit rules, goods attracting 2% duty under Notification No.. 1/2011-CE fall under the definition of Exempted goods. He was having closing balance Polyster Staple fibre and took credit in Tran 1 under table 7a. It is requested to clarify whether the said goods i.e. Polyster Staple Fiber will be used in the taxable supply under GST from 1.7.2017 is eligible for credit under Tran-1 as it was....
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.... not eligible for credit under Cenvat Credit Rules . Reply By Ganeshan Kalyani: The Reply: Sir, as per Section 140(3)(i) it is allowed. The relevant text is reproduced below for your ready reference. (3) "a registered person, who was not liable to be registered under the existing law, or who was engaged in the manufacture of exempted goods...shall be entitled to take, in his electronic cre....
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....dit ledger credit of eligible duties in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the appointed day..." subject to the following conditions, namely:- (i) such inputs or goods are used or intended to be used for making taxable supplies under this Act; 'this Act' means GST Act. Reply By Shilpi Jain: The Reply: Yes sir he....
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.... will be eligible for the credit for the closing stock on 30.06.2017 as per section 140(6) of the CGST Act as 2% is a fixed rate in lieu of tax payable. Reply By Ganeshan Kalyani: The Reply: Yes, mam, sub-section (6) of sec.140 is more appropriate. Thanks Reply By Himansu Sekhar: The Reply: In my view the ITC is not eligible. I am humby differing from the experts on the following grounds His ....
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....inputs are Polyster stable fibre attracting 2% duty as per Notf. no. 01/2011. It is exempted: As per Section 140. (1) A registered person, other than a person opting to pay tax under section 10, shall be entitled to take, in his electronic credit ledger, the amount of CENVAT credit carried forward in the return relating to the period ending with the day immediately preceding the appointed day, f....
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....urnished by him under the existing law in such manner as may be prescribed: Provided that the registered person shall not be allowed to take credit in the following circumstances, namely:- (i) where the said amount of credit is not admissible as input tax credit under this Act; or (ii) where he has not furnished all the returns required under the existing law for the period of six months imme....
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....diately preceding the appointed date; or (iii) where the said amount of credit relates to goods manufactured and cleared under such exemption notifications as are notified by the Government.:<br> Discussion Forum - Knowledge Sharing ....