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Itc for excise paid

SSG (1936 Points)

20 May 2017

Whether a person (presently registered under VAT only), unregistered under excise, having goods as on 30th June 2017, on which excise duty has been paid, will be eligible for ITC under GST for the CENVAT paid? Please advise.

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9 Replies

CA Altamush Zafar (GST Consultant) (15907 Points)
Replied 20 May 2017

Yes he shall be eligible for credits subject to following conditions:-
Goods shall be used for taxable supply,
He is eligible for credits under GST scheme,
Possession of documents indicating payment of duty(invoice),
The date of such invoice should not be earlier than 12 months .

1 Like

CA Altamush Zafar (GST Consultant) (15907 Points)
Replied 20 May 2017

*12 months from the appointed day

SSG (1936 Points)
Replied 20 May 2017

Is similar provision in respect of capital goods?

CA Altamush Zafar (GST Consultant) (15907 Points)
Replied 20 May 2017

Not available for capital goods. Credits of capital goods can be availed only if 50% have already been claimed the rest can be claimed after GST regime. Apart from this no additional credits on capital goods can be availed in transition.

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ROHIT YADAV (Finance Analysist) (607 Points)
Replied 20 May 2017

No such provision for twelve months for capital goods.

SSG (1936 Points)
Replied 21 May 2017

So does this mean no ITC on any kind of goods, bought uptill 30.06.2017, for service tax registered entities. Though they can take credit of GST paid on goods purchased under GST regime.

CA Altamush Zafar (GST Consultant) (15907 Points)
Replied 21 May 2017

Service tax registered entities can take credits of inputs held in stock on appointed day provided they have invoice indicating payment of duty and such invoice should not be earlier than 12 months

SSG (1936 Points)
Replied 21 May 2017

What will be stock for service provider (not registered under excise and vat)? Whether ITC for Excise and VAT can be taken by Service Tax Registered person, on assets in hand as on 30.06.2017? Eg.: Computer Systems, ACs, Furniture, Softwares etc in use as on 30.06.2017, in a CA office.

CA Altamush Zafar (GST Consultant) (15907 Points)
Replied 21 May 2017

A registered service provider can take credits of excise therefore excise credits can only be transferred only if shown in cenvat returns. Credits of VAT can be taken provided you have invoice indicating payment of tax and invoice date is not earlier than 12 months.