In this article, we are going to discuss the transitional provisions under GST acts (CGST, SGST and UTGST) regarding input tax credits of capital goods unavailed as on 30.06.2017. Concept of this transitional provision is same in all these acts, however we are going to discuss the provisions of each act separately:
Unavailed CENVAT Credit of Capital Goods
Where a registered person under GST has unavailed CENVAT Credit as on 30.06.2017, he will be allowed to take credit of that amount immediately subject to following conditions:
- Registered person under GST should not be registered under Composition Levy provisions.
- He shall be entitled to take credit of unavailed CENVAT Credit in respect of capital goods.
- It will not be allowed where the said amount of credit is not admissible as Input tax credit under this act.
“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 existing law from the aggregate amount of CENVAT credit to which the said person was entitled in respect of the said capital goods under the existing law.
Unavailed State VAT Credit of Capital Goods
A registered person under GST (other than those who opt to pay GST under Composition Levy) shall be entitled to take credit of Unavailed Input Tax Credit under State VAT laws in respect of capital goods. However, it will not be allowed where the said amount of credit is not admissible as Input tax credit under this act as well as in existing law.
“Unavailed Input Tax Credit” means the amount that remains after subtracting the amount of input tax already availed in respect of capital goods by the taxable person under the existing law from the aggregate amount of input tax credit to which the said person was entitled in respect of the said capital goods under the existing law.
Unavailed VAT Credit of Capital Goods in case of assessee belongs to Union Territory (UT)
A registered person under GST (other than those who opt to pay GST under Composition Levy) shall be entitled to take credit of Unavailed Input Tax Credit under State VAT laws in respect of capital goods. However, it will not be allowed where the said amount of credit is not admissible as Input tax credit under this act as well as in existing law.
“Unavailed Input Tax Credit” means the amount that remains after subtracting the amount of input tax already availed in respect of capital goods by the taxable person under the existing law from the aggregate amount of input tax credit to which the said person was entitled in respect of the said capital goods under the existing law.
