Input Tax Credit in GST

Input Credit of CENVAT on Stock lying as on 30.06.2017

There are two scenario

Input Credit on Stock before first July 2017

Input credit on Supplies on or after first July 2017

For stock before first of july 2017 following conditions are there

The dealer was registered under old laws:

1)the goods/services on which ITC is to be claimed should be taxable under the CGST Act.

2)the inputs shall not fall under the negative list of the inputs on which the ITC is not available under the CGST Act (Section 17).

3)that the dealer must be having excise/ service invoice prescribed under the Central Excise Act / Service Tax

4)the Invoices should not be old than 12 months

A dealer who was not registered in earlier law:

Rule 3 of the Draft Transition Rules provides the conditions fulfilling which

a registered person who was not registered under the existing law

and is availing credit in accordance with the proviso to sub-section (3) of section 140 shall be eligible to take credit at the rate of forty per cent of the central tax (CGST) applicable on supply of such goods after the appointed date and same shall be credited after the central tax (CGST) payable on such supply has been paid. The time period for claiming such credit will be 6 tax periods (6 months).

Other conditions which need to be fulfilled to take the credit of CGST are

(i) Such goods were not wholly exempt from duty of excise specified in the First Schedule to the Central Excise Tariff Act, 1985 or were not nil rated.

(ii) Document for procurement of such goods is available with the registered person.

(iii) Registered person availing this scheme and having furnished the details of stock held by him in accordance with the provisions of clause (b) of sub-rule (2) of rule 1, submits a statement in FORM GST TRAN— at the end of each of the six tax periods during which the scheme is in operation indicating therein the details of supplies of such goods effected during the tax period.

(iv) The amount of credit allowed shall be credited to the electronic credit ledger of the applicant maintained in FORM GST PMT-2 on the Common Portal.

(v) The stock of goods on which the credit is availed is so stored that it can be easily identified by the registered person.

Normal Input Credit Provision