Available CENVAT Credit in GST
Closing Balance of CENVAT Credit as on appointed date (say 30th June 17)
The amount of credit which is carried forward in return for immediately preceding period (say 30th June 2017), same can be entered in GST electronic credit ledger which can be used for paying output tax under GST.The above credit shall not be available for persons opting for composition scheme.Provided that the taxable person shall not be allowed to take credit unless the said amount was admissible as CENVAT credit under the earlier law and is also admissible as input tax credit under the GST Act.The amount taken as credit shall be recovered as an arrear of tax under this Act from the taxable person if the said amount is found to be recoverable as a result of any proceeding instituted, whether before or after the (say 30th June) appointed day, against such person under the earlier law.CENVAT Credit can be related to inputs, input services or capital goods. Balance shown in the return furnished under current tax regime will be opening balance in electronic tax ledger under GST to be known as CGST or SGST
Available CENVAT Credit on Capital Goods in GST Regime
Closing Balance of CENVAT Credit as on appointed date (say 30th June 17)
A registered taxable person shall be entitled 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 earlier law by him, for the period ending with the day immediately preceding the appointed day.The expression “unavailed cenvat credit” means the amount that remains after subtracting the amount of cenvat credit already availed in respect of capital goods by the taxable person under the earlier law.The condition is that credit must be eligible under GST law as well.If excess credit carried forward, it will be recovered under GST
Available CENVAT Credit on Inventory in GST Regime
Credit of eligible duties & taxes will be allowed in respect of inputs held in stock as semi-finished goods or finished goods on the appointed day (say 30th June 17)
- Persons eligible for credit:
a) Who was not liable to registration under earlier law but now is required under GST.b) Manufacturer of exempted goods or provider of exempted services which now became taxable.c) Works contract service provider.d) First stage or second stage dealer
- Conditions for credit:
a) Inputs are used for making taxable suppliesb) Taxable person passes the benefit of credit to recipientc) Taxable person is eligible for input tax creditd) Invoice should be issued & should not be more than 12 months earliere) No abatement is taken
- A registered person, who has opted for composition scheme under earlier law can take credit of inputs held in stock semi-finished goods or finished goods, if he doesn’t opt for composition scheme in GST law and other conditions are satisfied.
GST Available CENVAT Credit on Return of Goods
Duty/tax paid goods returned to the place of business on or after the appointed day (say 30th June 17)
GST Credit Availability Chart
Already availed (if available) & VAT balance is carried forward as SGST receivable Recommended Articles
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