Transitional CENVAT credit and cess carry-forward under GST hinge on unnotified amendments, vested rights, and statutory limits on recovery.
Transition of unutilised CENVAT credit of Education Cess, Secondary and Higher Education Cess, and Krishi Kalyan Cess under Section 140(1) of the CGST Act is examined as a preservation of accumulated pre-GST credit. The article contends that the restrictive amendments linking the explanations to sub-section (1) were not notified, so they do not limit the carry-forward of CENVAT credit. It further argues that cess credit was validly part of CENVAT credit under the old regime, that accrued credit is a vested right protected by Section 174(2), and that Rule 117 cannot override the statute. (AI Summary)