Treatment of Input Credits where Invoice of purchases received by purchaser after 30.06.2017


A big question in everyone’s mind is that what will the treatment of input tax credits, where seller of goods or provider of services has issued invoice before 30.06.2017 under previous laws (i.e. under excise duty, State VAT or under Service Tax provisions) and such invoice received by purchaser after 30.06.2017 (i.e. after implementation of GST).

In this case, law has provided that a registered person under GST shall be entitled to claim input tax credits under GST laws against such taxes paid under previous laws subject to the condition that the invoice or other document (evidencing payment of taxes under previous laws) be recorded in books of accounts within 30 days from the appointed date (i.e. invoiced must be recorded by 30.07.2017).

Law has provided a remedy against limitation of 30 days that such period can be extended by Commissioner for a further period of maximum of 30 days on sufficient cause being shown.

Manner of claiming benefit under this provision:

As per Transition rules, such person shall file a declaration in form GST TRAN-1 along with following details:

  1. the name of the supplier, serial number and date of issue of the invoice by the supplier or any document on the basis of which credit of input tax was admissible under the existing law;
  2. the description, quantity and value of the goods or services;
  3. the quantity in case of goods and the unit or unit quantity code thereof;
  4. the amount of eligible taxes and duties or, as the case may be, the value added tax [or entry tax] charged by the supplier in respect of the goods or services;
  5. the date on which the receipt of goods or services is entered in the books of account of the recipient.

Leave a comment

Your email address will not be published. Required fields are marked *