Where a registered person having centralised registration under the existing law has obtained a registration under this Act, such person shall be allowed to take, in his electronic credit ledger, credit of the amount of CENVAT credit carried forward in a return, furnished under the existing law by him, in respect of the period ending with the day immediately preceding the appointed day.
However, such credit shall not be allowed to carry forward where such amount is admissible as input credit under this Act. It means every dealer have to maintain proper records of each transaction for which credits are carried forward under previous law.
One of the biggest remedy provided to dealers having centralized registration is that they can transfer such input tax credits to any unit registered anywhere in India under same PAN.
If the registered person furnishes his return for the period ending 30.06.2017 within three months of the appointed day, such credit shall be allowed subject to the condition that the said return is either an original return or a revised return where the credit has been reduced from that claimed earlier: Dealer will have to very careful while filling his final return under previous law. If revised return filed with increased amount of Cenvat Credits, such increased amount will not be allowed to carry forward as ITC under GST.
