Section 140
Transitional arrangements for input tax credit.
GST
TRANSITIONAL PROVISIONS
Section 140 of Central Goods And Services Tax Act, 2017
Transitional arrangements for input tax credit.
140. (1) A registered person, other than a person opting to pay tax under section 10, shall be entitled to take, in his electronic credit ledger, the amount of CENVAT credit 1[of eligible duties] carried forward in the return relating to the period ending with the day immediately preceding the appointed day, furnished by him under the existing law 7[within such time and] in such manner as may be prescribed:
Provided that the registered person shall not be allowed to take credit in the following circumstances, namely:-
(i) where the said amount of credit is not admissible as input tax credit under this Act; or
(ii) where he has not furnished all the returns required under the existing law for the period of six months immediately preceding the appointed date; or
(iii) where t
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under the existing law from the aggregate amount of CENVAT credit to which the said person was entitled in respect of the said capital goods under the existing law.
(3) A registered person, who was not liable to be registered under the existing law, or who was engaged in the manufacture of exempted goods or provision of exempted services, or who was providing works contract service and was availing of the benefit of notification No. 26/2012-Service Tax, dated the 20th June, 2012 or a first stage dealer or a second stage dealer or a registered importer or a depot of a manufacturer, shall be entitled to take, in his electronic credit ledger, credit of eligible duties in respect of inputs held in stock and inputs contained in semi-finished or finished 9[goods held in stock on the appointed day, within such time and in such manner as may be prescribed, subject to] the following conditions, namely:
(i) such inputs or goods are used or intended to be used for making taxable supplies under
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prescribed.
(4) A registered person, who was engaged in the manufacture of taxable as well as exempted goods under the Central Excise Act, 1944 (1 of 1944) or provision of taxable as well as exempted services under Chapter V of the Finance Act, 1994 (32 of 1994), but which are liable to tax under this Act, shall be entitled to take, in his electronic credit ledger,-
(a) the amount of CENVAT credit carried forward in a return furnished under the existing law by him in accordance with the provisions of sub-section (1); and
(b) the amount of CENVAT credit of eligible duties in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the appointed day, relating to such exempted goods or services, in accordance with the provisions of sub-section (3).
(5) A registered person shall be entitled to take, in his electronic credit ledger, credit of eligible duties and taxes in respect of inputs or input services received on or after the app
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shed or finished 11[goods held in stock on the appointed day, within such time and in such manner as may be prescribed, subject to] the following conditions, namely:
(i) such inputs or goods are used or intended to be used for making taxable supplies under this Act;
(ii) the said registered person is not paying tax under section 10;
(iii) the said registered person is eligible for input tax credit on such inputs under this Act;
(iv) the said registered person is in possession of invoice or other prescribed documents evidencing payment of duty under the existing law in respect of inputs; and
(v) such invoices or other prescribed documents were issued not earlier than twelve months immediately preceding the appointed day.
(7) Notwithstanding anything to the contrary contained in this Act, the input tax credit on account of any services received prior to the appointed day by an Input Service Distributor shall be eligible for distribution as 12[credit under this Act, within such time
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ered person shall not be allowed to take credit unless the said amount is admissible as input tax credit under this Act:
Provided also that such credit may be transferred to any of the registered persons having the same Permanent Account Number for which the centralised registration was obtained under the existing law.
(9) Where any CENVAT credit availed for the input services provided under the existing law has been reversed due to non-payment of the consideration within a period of three months, such 14[credit can be reclaimed, within such time and in such manner as may be prescribed, subject to] the condition that the registered person has made the payment of the consideration for that supply of services within a period of three months from the appointed day.
(10) The amount of credit under sub-sections (3), (4) and (6) shall be calculated in such manner as may be prescribed.
Explanation 1.-For the purposes of [2] sub-sections (3), (4) and (6), the expression “eligible
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additional duty of excise leviable under section 3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957);
(ii) the additional duty leviable under sub-section (1) of section 3 of the Customs Tariff Act, 1975 (51 of 1975);
(iii) the additional duty leviable under sub-section (5) of section 3 of the Customs Tariff Act, 1975 (51 of 1975);
(iv) 5[****]
(v) the duty of excise specified in the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986);
(vi) the duty of excise specified in the Second Schedule to the Central Excise Tariff Act, 1985 (5 of 1986); and
(vii) the National Calamity Contingent Duty leviable under section 136 of the Finance Act, 2001 (14 of 2001); and
(viii) the service tax leviable under section 66B of the Finance Act, 1994 (32 of 1994),
in respect of inputs and input services received on or after the appointed day.
6[Explanation 3.-For removal of doubts, it is hereby clarified that the expression “eligible dut
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emed to have been omitted, before it was read as,
“(iv) the additional duty of excise leviable under section 3 of the Additional Duties of Excise (Textile and Textile Articles) Act, 1978 (40 of 1978);”
4.
The amendment vide Section 28 of the Central Goods and Services Tax (Amendment) Act, 2018 [sub-clause (i) of clause (c) of section 28] w.e.f 01-07-2017 to the Explanation 2 yet to be notified, which read as, “for the word, brackets and figure “sub-section (5)”, the words, brackets and figures “sub-sections (1) and (5)” shall be substituted and shall always be deemed to have been substituted.”
5.
Omitted vide Section 28 of the Central Goods and Services Tax (Amendment) Act, 2018 w.e.f 01-07-2017 shall always be deemed to have been omitted, before it was read as
“(iv) the additional duty of excise leviable under section 3 of the Additional Duties of Excise (Textile and Textile Articles) Act, 1978; (40 of 1978.)”
6.
Inserted vide Section 28 of the&
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nbsp;dated 16-05-2020) before it was read as “goods held in stock on the appointed day subject to”
12.
Substituted vide Section 128 of the Finance Act, 2020 w.e.f. 01-07-2017 (Notification No. 43/2020 – Central Tax dated 16-05-2020) before it was read as “credit under this Act even if”
13.
Substituted vide Section 128 of the Finance Act, 2020 w.e.f. 01-07-2017 (Notification No. 43/2020 – Central Tax dated 16-05-2020) before it was read as “in such manner”
14.
Substituted vide Section 128 of the Finance Act, 2020 w.e.f. 01-07-2017 (Notification No. 43/2020 – Central Tax dated 16-05-2020) before it was read as “credit can be reclaimed subject to”
15.
Substituted vide Section 147 of the Finance (No. 2) Act, 2024 w.e.f. 01-07-2017 [w.e.f. 01-11-2024 vide Notification No. 17/2024 Central Tax dated 27-09-2024] before it was read as,
“even if] the invoices relating
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