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Credit in gst of excise duty paid by a trader

ITC / Input 678 views 5 replies

Anil Manwani

Practicing Chartered Accouantant

28 Points Joined August 2015

A trader purchases directly from the manufacturer, the manufacturer charges excise duty as well as VAT in the invoice. Till now the dealer used to take credit of VAT and excise duty was treated as an expense. In GST Whether the person will be eligible to avail credit of the excise duty.. if yes under which section and what all conditions have to be fulfilled ?

Thanks in advance

Replies (5)

SAURABH ZAWAR

269 Points Joined April 2017

If you have taxable purchase invoice you can take full credit in gst and if you don't have taxable purchase invoice you can take credit at rate specified by government

Rahul Chhallani

42 Points Joined April 2017

pls refer section 140(3) of CHEST Act

Rahul Chhallani

42 Points Joined April 2017

*correction CGST

HIREN

Chartered Accountant

320 Points Joined May 2010

If trader wants to take such credit then he has to get excise invoice from manufacturer. Credit is allowed only on the basis of valid documents. Credit can be taken on invoices till last 12 months only. Kindly note that there is some provision in GST as per which if you take such credit then you have to pass on benefit to end user by making adjustment in sale price accordingly.

suneelkumar

student

28 Points Joined January 2009

Excise Duty paid to Manufacturer by VAT dealer and such Stock lying on 30-06-2017 at VAT dealer.

Whether CGST credit will be avialable to VAT Dealer (having Excise Invoices) for which he already paid Exciseduty to Manufacturer? (for GST transition provision)