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anybody ans

05 November 2017

can I eligible input credit on capital goods in trns1

Total Replies : 5

  Sumit Kothari   04 November 2017I am a road contractor. I am registered in vat but not in service or excise.Dt.. 01.07.16 to 30.06.17 I have purchased rs. 1 crore plant and machinery. In these bills excise duty is show rs. 12.50lacs so can you suggest these amount claim in CGST in trans1or2or3

  Parv Kumar   04 November 2017Same amt claimed as CGST by filling details in Column 7 of TRAN-1........

  Sumit Kothari   05 November 2017In table 7 a type of goods what do I select

  Sumit Kothari   05 November 2017My goods is capital goods

  Sumit Kothari   05 November 2017Anybody ans

  Sumit Kothari   05 November 2017??????????

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12 Replies

Parv Kumar (Student) (4037 Points)
Replied 05 November 2017

Yes you can claim ITC for same in TRAN-1....

1 Like

Meenu (Article Assistant) (93 Points)
Replied 05 November 2017

You cannot claim Cenvat credit with respect to excise duty of Rs. 12.50 lacs in TRAN 1 as the same is not admissible as credit under erstwhile regime considering the fact that you are not registered in central excise / service tax. As per section 140(2), a registered person can claim transitional credit on capital goods provided the credit is eligible under earlier law as well as under GST. You being a person registered in vat cannot claim cenvat credit of excise duty component on capital goods under earlier law. However, you can claim input tax credit with respect to vat paid on such capital goods.

1 Like

Parv Kumar (Student) (4037 Points)
Replied 05 November 2017

Akila he can claim ITC of same...

TRAN-1 is also for those dealer who are not registered under earlier regime but now he was registered in GST....

Meenu (Article Assistant) (93 Points)
Replied 05 November 2017

Dear Parv Kumar...The provision which you are saying is available only for inputs held in stock as on the appointed date and not for capital goods

Parv Kumar (Student) (4037 Points)
Replied 05 November 2017

Its also available for capital goods...

Meenu (Article Assistant) (93 Points)
Replied 05 November 2017

Please kindly refer section 140(2) which is dealing with transitional credit on capital goods. The above deemed credit provision contemplated by you is covered in section 140(3) which is dealing with credit on inputs lying as stock.
Also, refer the format of Tran 1 wherein the capital goods credit can be availed in table 6(a) /6(b)
Table 6(a) is for carry forwarding excise duty credit, which would ask for the registered person excise registration no. / service tax no. under earlier law. Therefore, without specifying the same excise duty credit cannot be availed.
Table 6(b) if for carry forwarding vat credit paid on capital goods which asks for vat registration number. This shows that a trader who has not registered in Excise / Service Tax can quote only his vat registration number in table 6 (b) and cannot avail excise duty credit in table 6 (a)

Also please refer last para in this article

https://cleartax.in/s/gst-itc-transition-provision

1 Like

Sumit Kothari (200 Points)
Replied 05 November 2017

Can I claim or not

Meenu (Article Assistant) (93 Points)
Replied 05 November 2017

You cannot claim excise duty credit

Sumit Kothari (200 Points)
Replied 05 November 2017

Thanks akila

Parv Kumar (Student) (4037 Points)
Replied 05 November 2017

Thanks for info akila. Will check it out

RAMAPRASAD (MBA) (246 Points)
Replied 05 November 2017

AKILA he can claim even though he is not under cenvat under earlier laws provided following conditions are met

1. He has a excise invoice.
2. He has not claimed depreciation

Meenu (Article Assistant) (93 Points)
Replied 06 November 2017

Ramaprasad Kindly refer first para of the article below which states the condition for availing transitional credit on capital goods.

https://www.caclubindia.com/articles/transitional-provisions-relating-to-credit-of-unavailed-cenvat-credit-in-capital-goods--30073.asp