TaxTMI 
TaxTMI 
Transitional Credit
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....ransitional Credit<br> Query (Issue) Started By: - THYAGARAJAN KALYANASUNDARAM Dated:- 20-11-2020 Last Reply Date:- 22-11-2020 Goods and Services Tax - GST<br>Got 7 Replies<br>GST<br>Dear Experts, One of my client's instead of transfer the credit through by filing TRAN-1 from VAT to GST but taken wrongly in GSTR-3B. How do I rectify this mistake and get the proper credit? If any case laws su....
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....pporting this, please share this very urgently needed. I appreciate any help you can provide. Reply By Ganeshan Kalyani: The Reply: In my view, there is no facility as of now to rectify such instance. If your claim of transitional credit is correct then you can still justify the authority that medium of carry forwarding the claim in incorrect but the claim it self is not. Was there any system e....
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....rror ? Reply By THYAGARAJAN KALYANASUNDARAM: The Reply: Dear Sir, No sir. He was not attempted to file TRAN-1. Instead of filing Tran-1, he directly has taken this credit into GSTR-3B. Reply By Ganeshan Kalyani: The Reply: Sir, you will will have to justify your claim at the time of verification from the department. Reply By ramkumar chelliah: The Reply: I would like to state that once a du....
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....ty is paid the same can be allowed as Input Tax Credit. The Department cannot disallow the Input Tax Credit availed because the duty paid cannot be disputed and the use of the inputs in the supply of final product cannot be disputed. Hence the Input Tax Credit cannot be denied for the simple reason of not included in the GSTR-3B. Reply By Ganeshan Kalyani: The Reply: Sri Ramkumar Sir, I agree wi....
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....th you. However, the department may raise an objection stating that the transitional credit should have been claimed according to the transition provision. There were number of queries in 2017, 2018 and also in 2019 on the claim of transitional credit. Reply By KASTURI SETHI: The Reply: I support the views of Sh.Ganeshan Kalyani Ji. Such direct carry forward credit is not litigation-free. SCN is....
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.... most likely to be issued by the department. Reply By THYAGARAJAN KALYANASUNDARAM: The Reply: Dear Sir, My client was audited by the GST Central Officer and issued defects notes to the client. The officer insisting the client to reverse and pay the wrong credit availed through GSTR-3B along with Interest, else they will issue SCN. I told the client to take the SCN, based on the cause of action;....
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.... we will invoke the WRIT Jurisdiction. Is this my advice is correct? Please advise me any other way out. Thank you so much for your attention and participation.<br> Discussion Forum - Knowledge Sharing ....