What will happen to goods on which no excise credit is available as these goods are purchased within state from distributor or dealer other than manufacturer.
dear sir in short you are worry about the vat apid on goods?
it will be coverted into SGST credit.
I am not asking about SGST.
But applicability of CGST on sale of existing stock as on 31-03-16, which is bought from within state from person other than manufacturer, because excise credit is not with final trader it is with any dealer or distributor who has purchased directly from manufacturer.
in that case you cant avail credit for this goods on excise paid by dealer other than first stage or second stage.
Excise duty credit for traders is not available in GST Model law- However a manufacturer who is trading or a registered dealer under CE can pass on the credit to the next stage. This is not EQULA & FAIR. - needs ot be amended to allow duty paid stocks at least with duty paying documents to be enabled credit.
We are distributors in India for foreign manufacturer. We import goods and pay CVD on all such imports. We pass on CVD thru MODVAT invoice to those who wish to avail credit. But 50% of our customers do not ask for MODVAT invoice and we do not pass on the credit.
What will happen to the stock as on 31-03-2017? Will we be able to get it converted in to IGST and use it for payment of CGST and SGST and pass on the benefit by price adjustment or will it be cost to us (traders)? Is there a chance of Govt allowing passing on CVD to our customers for a period 6 months/1 year so that customer can avail the credit treating it as IGST?
Dear sir, I am a trader and I receive Excise paid Invoice from manufacturer, i further tax invoice(VAT) the goods to my other retailers. I am regisered in Service Tax and CST but not excise. So would my retailers be able to take excise input credit on their stock on 31st March, since the same is excise paid by manufacturer.
In present VAT system excise credit will be available for only those units who have opted for CENVAT. But most of small scale units and traders do not have registration under CENVAT. But they will have excise levied stock under present system. GST subsumes excise also. If credit for excise is not allowed for such units, then it becomes double taxation, which is against the aim of GST.
Sir, Thank you for the clarification. We have 3 CE registrations as 'Importer' 'Dealer' and 'Manufaturer' The registarion numbers ends as follows
AAxxx1xx3G EM004
AAxxx1xx3G XD002
AAxxx1xx3G EI006
Our manufacturing activity is very small like few assemblies are done.
Can we pass on CVD component to customers after 01-04-17 or can we convert CVD in to IGST credit?
CAclubindia
