Proposed scheme of transferring credit from pre-GST regime to post-GST regime.

Goods and Service Tax – GST – By: – CA Akash Phophalia – Dated:- 1-9-2015 – This article is prepared to know about the proposed scheme of availing unutilized credit available with the assessee in pre-GST regime. The article also deals with the fate of credit for pre-GST unregistered assessees who will register in post-GST regime. Current provisions relating to input credit are different in case of central excise, service tax and other tax laws. Further, many of the state laws are different in relation to input credit provision. Possible methods which the Govt may adopt w.r.t to credit transition stocks could be as under: Fully allow deduction/refunds/carry forwards Fully deny deduction/refunds/carry forwards (of certain restricted goods) F

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ication of such inputs and transfer of credits. Burden of proof would be on claimant. Purchase invoice along with appropriate stock records duly certified by CA may be asked. Credit of Semi Finished and Finished goods lying in stock Credit on input goods used in semi finished/finished goods would have already been taken in tax records. Thus, no separate exercise. Require an appropriate mechanism to identify and allow taxes paid, based on records maintained. Credit of Capital Goods Must be allowed to carry forward the taxes paid in respect of eligible capital goods lying in stock. Subject to certain conditions as may be prescribed. These should also be allowed to take credit of capital goods that has suffered appropriate tax in pre GST regim

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