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Credit of Excise duty

Mohir Bansal (Article Assistant) (33 Points)

25 June 2017

Sir, I am a trader registered under VAT and I purchase the plywoods another dealer on which I have paid VAT and same is allowed as credit, now the query is whether the credit of excise paid by the that another dealer to manufacturer will be allowed to me to the extent of 60 percent?

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8 Replies

srikanth (Chartered Accountant) (83 Points)
Replied 25 June 2017

yes it is allowed

with the condition that the you should have valid purchase invoice and closing stock in hand

1 Like

Mohir Bansal (Article Assistant) (33 Points)
Replied 25 June 2017

thank you sir for your quick reply, further I have a query, how would I know that the another dealer from whom I have purchased the goods has paid the excise duty to manufacturer or not, as I have received only Vatable invoice and not the excisable invoice from that another dealer

1 Like

srikanth (Chartered Accountant) (83 Points)
Replied 25 June 2017

it is not require,

To claim the ITC you should have the valid Purchase Invoice.

2 Like

(Guest)

And copy file return for last 6 month

1 Like

MANIKANDAN MOORTHY (33 Points)
Replied 25 June 2017

Pl clarify abt claim of 60% and the method of calculation....

Jayesh Doshi (Self) (177 Points)
Replied 25 June 2017

Sir, here i have further query, as Mr.Mohir rightly said he doesn't know whether the dealer from whom he purchased goods had paid excise duty or not ?
Say if said goods were manufactured by a dealer who has his turnover less than 1.5 cr. so he was not supposed to be registered under excise laws & had not collected any excise so in such case also Mr. Mohir can claim 60% of CGST ?
or say the goods purchased by Mr.Mohir were manufactured by a dealer who had optional scheme of excise & not paid on earlier stage then also Mr.Mohir can claim 60% on CGST ?
Because many manufacturers were under the turnover limit of excise & many has registered in excise under optional scheme so they have not collected or paid any excise so when dealer purchase the said goos on 2nd or 3rd resale of said goods from invoice itself they can't prove whether excise was levied or paid on such goods or not ? whether assessing officer in future may ask this question to Mr.Mohir ?
please clarify. Thanks.

1 Like

Jayesh Doshi (Self) (177 Points)
Replied 25 June 2017

One more query please clarify if Mr. Mohir avail 60% of CGST then is it mandatory for him to pass on this credit to the customer to whom he sells this stock & show the same in the corresponding sales invoice of this stock ?