TaxTMI 
TaxTMI 
Transitional arrangements for input tax credit [ Section 140 ]
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....in 90 days of the appointment day. the commissioner may, on the recommendations of the GST Council, extend the period by a further period not exceeding 90 days. Important Notifications & circulars * Clarification regarding section 140(1) of the CGST Act, 2017. [ Circular No. 87/06/2019-GST dated 02.01.2019 ] Unavailed CENVAT Credit on Capital goods, to be allowed in certain situations [Section 140(2)] A registered Person other than a person opting to pay tax under section 10, shall be entitied to take, in his Electronic Credit Ledger, credit of the unavailed CENVAT credit in respect of capital goods, not carried forward in a return, furnished under the existing law by him, for the period ending with the day immediately preceding the appointed day within such time and in such manner as may be prescribed Explanation Unavailed Cenvat Credit on capital goods = Amount of cenvat credit eligible on capital goods &nbs....
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....he said registered person is in possession of invoice or other prescribed documents evidencing payment of duty under the existing law in respect of such inputs; (iv) such invoices or other prescribed documents were issued not earlier than twelve months immediately preceding the appointed day; and (v) the supplier of services is not eligible for any abatement under this Act: Provided where a registered person, other than a manufacturer or a supplier of services, is not in possession of an invoice or other documents then, he shall, pass on the benefit of such credit by way of reduced prices to the recipient, and he shall be allowed to take credit at such rate and in such manner as may be prescribed Eligibility of credit in case a person is engaged in manufacture of taxable as well as exempted goods [Section 140(4)] * A Registered Person engaged in * the manufacture of taxable as well as exempted goods under the Central Excise Act, 1944 or * provision of taxable as well as exempted services under Chapter V of the Finance Act, 1994, * Such exempted goods or exempted services are liable to tax under this Act. * He held the duty paid stock in hand on the appointment....
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.... restriction * Such stock to be used or intended to be used for making taxable supplies * Such person eligible to take ITC on inputs under this act * Such said person must be in possession of invoice & prescribed documents evidencing payment of duty under existing law in respect of inputs; and * He is not paying tax under Section 10 i.e. Composition Levy * Such invoices or other prescribed documents were issued not earlier than twelve months immediately preceding the appointed day. Distribution of Credit under this Act by Input Service Distributor [section 140(7)] Input Service Distributor shall be eligible for distribution of credit under this Act within such time & manner as may be prescribed for any service prior to the appointed day even if invoice is received on or after appointed day [ whether the invoices relating to such services are received prior to, on or after, the appointed day. w.e.f. 01.07.2017, Substituted vide Finance (No. 2) Act, 2024 (shall come into force w.e.f. 01.11.2024 vide N.No. 17/2024 dated 27.09.2024) ] Carry forward of credit where person has centralised registration under existing law [section 140(8)] * Where a regis....
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....and * the National Calamity Contingent Duty leviable under section 136 of the Finance Act, 2001, in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the appointed day. the additional duty of excise leviable under section 3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957. Explanation 2-For the purposes of sections 140(1) and (5), the expression "eligible duties and taxes" means- * the additional duty of excise leviable under section 3 of the Additional Duties of Excise (Goods of Special Importance) Act * the additional duty leviable under section 3(1) or (5) of the Customs Tariff Act, 1975; * the duty of excise specified in the First Schedule to the Central Excise Tariff Act, 1985; * the duty of excise specified in the Second Schedule to the Central Excise Tariff Act, 1985; and * the National Calamity Contingent Duty leviable under section 136 of the Finance Act, 2001, in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the appointed day. the additional duty of excise leviable under section 3 of the Additional Duties of Exc....
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....ct and * shall be recovered from the tax payer with interest and penalty as per the provisions of the Act. If Non-utilization of Disputed Credit carried forward or Non-transition of Blocked Credit terms of afore-stated is higher than Rs. 10 lakhs, * In all cases where the disputed credit as defined in Non-utilization of Disputed Credit carried forward or Non-transition of Blocked Credit terms of afore-stated is higher than Rs. 10 lakhs, * the taxpayers shall submit an undertaking to the jurisdictional officer of the Central Government that such credit shall not be utilized or has not been availed as transitional credit, as the case may be. * In other cases of transitional credit of an amount lesser than Rs. 10 lakhs, the directions as above shall apply but the need to submit the undertaking shall not apply. Clarification regarding procedure for recovery of arrears under the existing law and reversal of inadmissible input tax credit [Circular No. 42/16/2018-GST Dated 13th April, 2018] 4. In view of the legal provisions mentioned in the para 3, recovery of central excise duty/ service tax and CENVAT credit thereof arising out ....