Gst input credit on carryover stocks

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Rajeev Kumar Gupta

accountant

38 Points Posted on 16 May 2017

As regards the ED paid prior to GST roll out, it is proposed that the govt. would consider to compensate
40% of the ED paid regardless of the billing source (Plant or C&FA). This however, will be available subject
to declaring the opening stock as on 1st July 2017 on the GST portal. Govt. has provided 6 months’ time
to liquidate such inventories declared on the 1st of July. (i.e. up to 31st Dec 2017). Please exercise care to
upload the actual / accurate inventory on to the GST portal on the 1st of July’17 to avoid any complications
of reconciliations and thereby possible penalties.

If We are not able to liquidate the stock in 6 month what will be the penalty?

Replies (3)

CA PRATIK DHRUVE

CHARTERED ACCOUNTANT

477 Points Posted on 16 May 2017

penalty would be in the way that 40% of duty paid which was availed as set-off in first month, shall be reversed and person would be liable to pay the amount of duty reversed along with interest...

Rajeev Kumar Gupta

accountant

38 Points Posted on 16 May 2017

Thanks Sir,

How the ED shall be caculated when there was no ED shown saperately in the invoices. Will it be equal to CGST applicable to that inventory?

CA PRATIK DHRUVE

CHARTERED ACCOUNTANT

477 Points Posted on 16 May 2017

That shall be specified in some rules which are yet to come. Or else, if nothing specified, you would have to work out by reverse method or so. I believe Excise Duty records are to be maintained invoice wise so as to avail any CENVAT credit. So, you should be having invoice wise details.