Input tax credit of capital goods in transitional provision

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This query is : Resolved

Caanchal Rastogi (Querist)

02 May 2017 A company presently under existing law manufacture exempted goods but would be liable to tax under GST. ITC of on inputs would be available under section 140(3) or 140(4) as the case may be. but what about ITC on capital goods in chapter XX. whether it may be available under 140(2).

Guest

Guest (Expert)

03 May 2017 The unavailed credit on capital goods to such person will be not be allowed under GST

Sharwan Baluni

Sharwan Baluni (Expert)

07 May 2017 Unavailed CENVAT credit of capital goods will be allowed to you if you didn't carry forward the unavailed credit in the return for the period ending on 30.06.2017 under section 140(2) and you have to file the detail in FORM GST TRAN-1 under Rule 1 of Transitional Provisional rule. Also you have to fill the detail provided under Rule 1(2)(a) of the Rule in the FORM GST TRAN-1

Sharwan Baluni

Sharwan Baluni (Expert)

07 May 2017 The previous answer was in case you were register under excise. But if you were exempted under excise then 140(3) does not talk out capital goods. So, i think credit of capital gooda cannot be available.

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Caanchal Rastogi

Caanchal Rastogi (Querist)

10 May 2017 Dear Sharwan Bulani ji thank for reply. It is specifically denied through proviso of Sec 140(3) if a person registered but manufacturing exempted goods is also not eligible according to proviso of 140(3)

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