13 June 2017
Deemed credit means the credit not taken by some person as per the existing law but credit allowed under new GST system. technically the following Section 140(3) provides that a registered person: 1.who was not liable to be registered under existing law, or 2.who was engaged in supplying exempted goods or services or both, or 3.First Stage Dealer or Second Stage Dealer or Importer or Depot then, he shall be entitled to claim credit of taxes in respect of inputs or WIP or finished goods held in stock. But, such credit is allowed only if that person is allowed to claim credit for such stock in GST Act and he is in possession of invoice or other duty paying document.
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