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Closing stock

sachin (student) (68 Points)

25 June 2017

please clear the provision of credit of closing stock. at present our final product is exempt. we have exisable invoice in raw material. whether credit of vat invoice is available??

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6 Replies

Sharmila Paruchuru (CA) (39 Points)
Replied 25 June 2017

credit will not be available.
At present final product Is exempt then u would not have carry forward the tax credit in the return .
for tax credit to be claimed it should be allowed under the existing act and it should be eligible under gst

NITIN KOTAK (SERVICE) (1465 Points)
Replied 25 June 2017

if your final product is exempted, you are not eligable for input tax credit

CA Rashmi Gandhi (Chartered Accountant) (86500 Points)
Replied 25 June 2017

No credit available if final produvt is fully exempt

SURESH GANGAN (22 Points)
Replied 25 June 2017

input tax credit is available in gst sinario only if said stock is taxable as per present act the authority to claim is covered under transitional provisions.

CA Akhilesh Kumar Kandpal (Proprietor A K Kandpal & Associates) (1442 Points)
Replied 26 June 2017

if you are not registered on existing excise or vat law than you can take

CA Akhilesh Kumar Kandpal (Proprietor A K Kandpal & Associates) (1442 Points)
Replied 26 June 2017

sorry for incomplete answer...

if you are not registered in existing excise law than you can still take credit fully on raw material if you have invoices for the same....
however you can claim only for those items which are yet in your stock and invoices for which are not older than 12 month....
even if you somehow lost the invoice you can take credit upto 60% of the amount subject to certain condition......hence if anybody are having any good whose invoice is older than 12 month he could exercise 60% option...something is better than nothing.
BUT NO VAT CREDIT WILL BE AVAILABLE FOR THE EXEMPTED GOODS.......

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