Input Tax Credit on stock of goods held on 30/06/2017:
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When invoice of supplier showing tax paid is available: Following category of registered persons are covered here: 1. Person who is not liable to register under earlier laws 2. Person who was engaged in manufacture of exempted goods 3. Registered importer |
Excise Duty | State VAT | |||
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A taxable person who was not eligible to take Cenvat credit but is now under GST can take Cenvat credit of excise duty which was paid on stock with him, if he has invoices and other documents evidencing payment of excise duty. As per section 140(3) of CGST Act & SGST Act he must submit stock statement within 90 days. |
A taxable person who was no earlier registered under state vat but is now under GST can take Input tax credit on state vat paid on stock with him, if he has invoices and other documents evidencing payment of state vat. As per section 140(3) of SGST Act he has to submit stock statement within 90 days. |
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| Note: Duty paying documents which are older than 12 months are not eligible for Input tax credit. | |||||
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When invoice of supplier showing tax paid is NOT available: Even when duty paid documents is not available Rule 1(4) of transitional provisions Rules enable availing input tax credit. Conditions: 1. Scheme is available for 6 Months. 2. Goods should not be unconditionally exempted under excise or state vat laws. 3. Details of stock as on 30.06.2017 should be submitted in GST TRANS-1 within 90 days. 4. Every month registered person shall submit details of supplies of such goods in GST TRANS-2 for 6 months. 5. Amount will be credited to his electronic ledger in form GST PMT-2, only after paying GST to government. 6. Benefit of such credit will be passed on to recipient in form of reduced prices (Refer Anti-Profiteering topic in this blog) |
Applicable rates of CGST or IGST | Central Excise | State VAT, where tax Is payable at first point of their sale and subsequent sale are not subject to state VAT (Eg: VAT payable based on MRP basis) | ||
| If CGST rate is 9% or above [i.e IGST rate 18% or above] | Input tax credit of 60% of CGST payable on such goods OR 30% of IGST payable on such goods. |
Input tax credit of 60% of CGST payable on such goods OR 30% of IGST payable on such goods. |
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If CGST rate is below 9% [i.e IGST rate below 18%] |
Input tax credit of 40% of CGST payable on such goods OR 20% of IGST payable on such goods. |
Input tax credit of 40% of CGST payable on such goods OR 20% of IGST payable on such goods. |
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