Goods and Services Tax – GST – By: – Saurav Mantra – Dated:- 12-5-2017 Last Replied Date:- 23-5-2017 – As the GST is few months away from its much awaited implementation, the transitional provisions assume special importance for all the concerned stakeholders. Transitional provisions, in general terms, are those rules, methods or procedures that will enable the stakeholders to switch over from the current Indirect Tax regime to the GST regime. A detailed analysis of certain provisions under Revised GST Model and their impact are as follows: Amount of unutilised CENVAT credit/ITC relating to Input/Input services carried forward in a return to be allowed as input tax credit The conditions to carry forward the Cenvat Credit/ ITC belonging to the Old Tax Regime to the GST regime are as follows: For unutilised Cenvat Credit relating to Input/Input Services The balance of unutilised Cenvat credit (under Cenvat Credit Rules, 2004 like Excise duty, Service Tax, etc) must have been shown in th
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credited in the ledger and any utilization, refund and reversals will be debited in the ledger. Example of above provisions: Mr. A, dealing in manufacturing of electronic goods, has duly filed the Excise return, VAT return and Entry Tax return for the month of June 2017. Following are the unutilised credits shown in the returns:- unutilised Excise Cenvat credit – ₹ 100000 unutilised VAT – ₹ 75000 unutilised Entry Tax – ₹ 12000 Now, assuming GST rolls out on 01.07.2017 and all such credits are eligible under old law and GST law, the following implications will occur: Unutilized Cenvat Credit for Excise duty for ₹ 100000 will become CGST and will be transferred to electronic ledger. There is no time limit for utilisation of such CGST. VAT and Entry tax will be clubbed and ₹ 75000 plus ₹ 12000, i.e., ₹ 87000 will become SGST and will be transferred to electronic ledger. Such SGST of ₹ 87000 will have to be utilised within 90 days starting fr
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Credit Rules 2004 or under the respective State Value Added Tax laws Such Cenvat credit/Input Tax Credit on Capital Goods should be eligible both under the old law and GST law. Formula: Unutilised Cenvat Credit/Input Tax credit on Capital Goods = Total Cenvat Credit/ITC on Capital Goods minus the amount of such Cenvat Credit/ITC already availed under the earlier law. It is very important to note that the unutilised Cenvat Credit/ITC on capital Goods is eligible under GST even if they are not carried forwarded in the last return of the earlier law. – Reply By Medreich Limited – The Reply = Hi Sir,As per your article, VAT Credit should be utilized within 90 days, whether it is prescribed in the Act? VAT and Entry tax will be clubbed and ₹ 75000 plus ₹ 12000, i.e., ₹ 87000 will become SGST and will be transferred to electronic ledger. Such SGST of ₹ 87000 will have to be utilised within 90 days starting from 01.07.2017 – Reply By SANJAYKUMAR BEHURA – The Reply = De
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