We are manufacturers of Yarns and are also in Dyeing of Yarns. Our goods(Yarns) though were excisable , we were under the Optional Scheme under excise.
So when we purchased from Spinners, we received Tax Invoice and not the Excise Invoice.
What should be status of Input Credit regarding those stocks lying with us?
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Is Input Credit available on Goods covered under Optional Scheme of Bengal regarding excise duty
Replies (4)
What is optional scheme sweta here plz elaborate
Optional Scheme in Textile sector is
If the Excise Duty is paid on Raw Materials, it is not required to be paid at further manufacturing and processing stages.
Example- When excise is paid on Polyester Fibre, then it is not required to be paid on Yarns.
The other route is MODVAT Credit Route till the end product is sold to the customer.
So to clarify, excise has only been paid on Fibre and not on Yarns in our case. So we only have Tax Invoice and not Excisable Invoice.
In such case, what should be the status of ITC of those stocks lying with us..?
If the Excise Duty is paid on Raw Materials, it is not required to be paid at further manufacturing and processing stages.
Example- When excise is paid on Polyester Fibre, then it is not required to be paid on Yarns.
The other route is MODVAT Credit Route till the end product is sold to the customer.
So to clarify, excise has only been paid on Fibre and not on Yarns in our case. So we only have Tax Invoice and not Excisable Invoice.
In such case, what should be the status of ITC of those stocks lying with us..?
Optional Scheme in Textile sector is
If the Excise Duty is paid on Raw Materials, it is not required to be paid at further manufacturing and processing stages.
Example- When excise is paid on Polyester Fibre, then it is not required to be paid on Yarns.
The other route is MODVAT Credit Route till the end product is sold to the customer.
So to clarify, excise has only been paid on Fibre and not on Yarns in our case. So we only have Tax Invoice and not Excisable Invoice.
In such case, what should be the status of ITC of those stocks lying with us..?
If the Excise Duty is paid on Raw Materials, it is not required to be paid at further manufacturing and processing stages.
Example- When excise is paid on Polyester Fibre, then it is not required to be paid on Yarns.
The other route is MODVAT Credit Route till the end product is sold to the customer.
So to clarify, excise has only been paid on Fibre and not on Yarns in our case. So we only have Tax Invoice and not Excisable Invoice.
In such case, what should be the status of ITC of those stocks lying with us..?
dear shweta plz visit this link poojnt no 3 & 3A for your query https://www.gstsoln.com/all-about-transitional-provisions-us-140-compiled-with-relevant-rules-in-general-language-from-business-point/
further if excise amount is shown separately in the invoice then u can claim full credit
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