Gst collection on closing stock held on 30/06/2017

The benefit of GST in future is that You can avail full ITC on goods you purchase

Dear Vipin,

I have read the model law and some discussuion regarding the transition from current system into the new GST system. However there is still some confusion regarding the credit available for Importers.

As we all are aware all imports attract import duty (comprices of Basice custom duty (BCD), Counterveiling Duty (CVD) and Special additional duty (CVD). So, we have already paid the the import duty on our inventory. However, from july 1st 2017 we need to raise an GST invoice. We all know that the custom duty is going to remain even under GST regime. However IGST will take ouver the rest of duties.

So my query is 

1. So, what is the provision on availing the credit on the CVD and SAD that we have already paid on the imported goods and stayting on our inventory.??
2. Are we entitled to get 100 % of CVD and SAD paid??   if yes, then whats the procedure??
3. Under which chapter and article of GST Law is it mentioned ??

Under the current law , tax paid on Import will be avaliabl as credit - Details of such credit in Filling of Return .

Also for SAD you can claim refund as of under current law no such restriction are there in new GST law.

Kindly refer updated CGST /SGST Act and IGST Act

U all need to wait for circulars and notification for procedures to be adopted.

Tks vineet for your prompt revert. the importers are entitled to get 100 % of CVD and SAD paid?? can my buyers also get the input credit if i have passed the exicse invoice to him??

The rason for this query is because there is fear created in customers regarding non availability of credits
 

Yes , Importer Can claim the Credit of CVD - But related to % of Credit that can be claimed by another party if Transfering such credit is not clear in new law - Expecting a circular or Notif for the same .
For SAD paid U can claim refund for SAD paid as per current procedure no restriction in new law also expecting transition period for the same will be specified.

For passing credit to your buyers they can claim Credit in such invoice - Expecting a % Rule to come for the same as per GST council meetings and disscussion pending on the same

Sir,
we have stock of fabrics n unstiched n semistched goods ready to sale...
earlier no any tax on fabrics ...
we paid vat on packing materials and service tax paid on services...

so plz tell me about credit of
inventory
vat paid
service tax paid .

thanks

Are u currently registered under VAT or Service Tax ?

what is the percentage of credit eligible on closing stocks as on 30/06/2017 ?

I heard some 60% or 40% credit will b available on closing stock !!!

is it right?

pls give ur view

The criteria of 60/40 is for those registered dealers who are traders and eligible only for VAT credit only , now for comming GST regime if existing Stock contains Invoiced items with excise added , and if such document is not avaliable the in GST regime the dealers can take credit of VAT +Excise also (But upto 60% for GST rate >9% & upto 40% for others) .

For more clarity you can refer Transitional Provision.

Dear VIpin,

A Very Good Morning to you!

I am finding it diffiuclt to evalualte and calculate the current costing for goods in inventory. For example, I am an importer and I have inventory of a product for which the Import duty has already been paid. The import duty comprises of Basic Custom Duty (BCD), 2 EDu Cess, Conter veiling duty (CVD-equivalent to excise) and Special Additional Duty (SAD).

 

1. Can we avail credit for all these duties paid i.e. 2 EDu Cess, Conter veiling duty (CVD-equivalent to excise) and Special Additional Duty (SAD)??

2. do importers need to maneion any additonal details in invoice to show that goods are being supplied from direct imports??....how will the customer know if the goods are directly imported by us of procurred locally. 

3. Do we need to mention any details  while selling under gst from inventory stocked before july 1st ??

4. How to get refund of SAD??...you have mentioned that we can avail using current procedure. but the current procedure no longer exist i think after gst. 

5. How to file closing stock online?

6. is the format of invoice same for importers, manufacturers and local traders?? is there any sample invoice format??

7. When and how should we declre closing stock online??

 

thanks in advance

 

The pricing will depend upong the credit that we can obtain. 
 

First of all note the below points :
1.) For Import Duties You will get credit of CVD & SAD only under current tax regime , and under GST the CVD+SAD = IGST So in New GST regime you can take the credit of IGST .

Regarding Refund of SAD in current Tax Regime , If U couldn't take the refund of SAD , then U can c/f the SAD as ITC , but you have to file respective TAX (i.e. VAT /Excise/ Service Tax) Return within 3 months showing such details .

From the above explanation It seems that u are a first stage dealer , So under New GST regime U need to raise Invoice as per GST and mention GSTIN Invoice.

Regarding GSTN Invoice u need to refer GST- Invoice Rules.

Since our GST return period has been postponed to september u need to wait for announcement

Yes i am aware that under gst regime the CVD+SAD = IGST. But I already hold inventory for wich CVD and SAD has already been paid. So if i sell from this inventory post july 1st are you saying ther will be no credit cranted against my duties i.e. cvd and SAD paid?? . I have heard in many videos and articles stating the duties paid on inventory will get 100% credit, but no where the procedure is mentioned. I just want to safeguard my money that i alredy paid as duty on my imported inventory. 

Also, i want to know how to quote a customer 

Import Price of the product - 10 Rs

BCD - 7.5% on assesible value i.e. on 1.01 of RS 10 = 7.5% of 10.1 = 0.7575 

IGST = 1.9543 (18% of Assesible value + Basic customs duty i.e. BCD)

Other expense (Freight+loading+unloading+ clearance charge) = Rs. 0.50

And if i want my profit margin as 10% then

A--cost with IGST-----Total cost = Investment =10 + 0.7575 (BCD) + 1.9543 (IGST) + 0.50 (Other Expenses) = 13.21 

B----if Return on investment = 10%, Then the margin comes up to = 1.321

C---Cost without IGST----Total cost = Investment =10 + 0.7575 (BCD) + 0.50 (Other Expenses) = 11.25

D (Quote to the inter state Customer) = 11.25 (C) + 1.321 (B) + [ 11.25 (C) + 1.321 (B) ] * IGST i.e. 18% = 12.57 + IGST 18%

Is the quote right?? will i also get the credit of the Import duties except BCD paid on the inventory if i quote like this??

 

 

 

 

Hello,

If a trader is dealing in exempted goods says, foodgrainsi.e. wheat flour, rice,etc then what would be the status of closing stock on 30 June 2017 and its reporting requirements as no vat is levied under gst regime.

Kindly guide.

Thanking you in advance.

Hello,

If trader have closing stock of exempted goods say wheat,rice,gram flour,etc as on 30 June 2017 what would be the reporting requirement under GST regime as no vat or other taxes were levied earlier.

Under gst clg stock exempt goods on 30 Jun. 2017, any transitional form / return need to be filed.

Kindly guide.

Thanking you in advance