Transitional Provisions for Input Tax Credits- Where exempted goods/services under previous law becomes taxable under GST


Input tax credits of Excise Duties

Where a registered person under GST, who was 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;

and

such exempted goods and/ or services becomes taxable under GST, he shall be entitled to take, in his electronic credit ledger:-

> the amount of CENVAT credit carried forward in a return furnished under the existing law; and

> the amount of CENVAT credit of eligible duties in respect of inputs as referred below held in stock on the appointed day, relating to such exempted goods or services:

  • inputs held in stock; and
  • inputs contained in semi-finished goods; and
  • inputs contained in finished goods

and amount of such CENVAT Credit in respect of exempted goods or services is calculated in accordance with the provisions discussed in article as referred below:

CENVAT Credit (of Excise duty) allowed on Closing Stock as on 30.06.2017 even if dealer was not an excisable unit or exempted entity under Excise Laws


Input tax credits under State VAT Law:

Where a registered person under GST, who was engaged in the sale of taxable as well as tax free goods under the State VAT Laws and such exempted goods becomes taxable under GST, he shall be entitled to take, in his electronic credit ledger,—

  • the amount of State VAT credit carried forward in a return furnished under the existing law; and
  • the amount of State VAT credit in respect of inputs as referred below relating to such exempted goods held in stock as on 30.06.2017:
    • inputs held in stock; and
    • inputs contained in semi-finished goods; and
    • inputs contained in finished goods

and, amount of such CENVAT Credit in respect of exempted goods is calculated in accordance with the provisions discussed in article as referred below:

GST Transition- Input Tax Credit of State VAT allowed on Closing Stock as on 30.06.2017 even if dealer was not a registered VAT Dealer

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