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Transition Provision Under GST
CA Mayur Zanwar
EXCISESERVICE TAX
VATGST
TRANSITIONAL PROVISION OF CENVAT CREDIT STANDING IN RETURN
Input Tax Credit
CENVAT credit
VAT credit
It includes Central excise Service Tax Education cess NCCD krishikalyan cess (only to service
provider) Additional duty u/s 3(1) of Custom Tariff Act
It includesITC under VAT law of state CVD 3(5) under CTA
Can be availed against payment of CGST i.e.as a CGST Credit
Can be availed against payment of SGST i.e.as a SGST Credit
Person Is Register Under Existing Law
Person is register under GST and not opting for composition scheme
CENVAT or VAT is carried forward in return as per Earlier Law
Said Credit can be carried forward as ITC under GST in Following manner
Situation I- Already Register
TRANSITIONAL PROVISION OF UN-AVAILED CENVAT CREDIT ON CAPITAL GOODS
Person Is Register Under Existing Law (Excise or Service Tax)
Person is register under GST and not opting for composition scheme
There is un-availed CENVAT not carried forward in return as per Earlier Law
Said Credit can be taken as ITC under GST as CGST
TRANSITIONAL PROVISION OF CREDIT OF INPUT HELD IN STOCK
Person is
-Not liable to Register Under Existing Law or
-Manufacture exempted goods or
-Providing exempted service or
-Paying tax under composition scheme in earlier law or
-Register importer
Person is register under GST
There is stock in hand on appointed day on which tax has been paid under earlier
law
Tax paid on such stock can be taken as ITC under GST
as follow
Excise Service tax- as CGST
VAT- as SGST
Situation II- Not Register under earlier Law
Condition for taking such credit
Such inputs are used or intended to be used for making taxable supplies under GST
He has passes on the benefit of such credit by way of reduced prices to the recipient
He is eligible for input tax credit on such inputs under GST
He is in possession of invoice not older than 12 month evidencing payment of duty under the earlier law in respect
of such inputs
the supplier of services is not eligible for any abatement under GST
In case of dealer/traders-who is not in possession of an invoice evidencing payment of excise
-he shall be allowed to take credit at the rate and in the manner prescribed.
Engage in manufacturing of taxable as well as Exempted goodsOr
Engage in provision of taxable as well as exempted services
Now in GST whole supply become taxable
Entitle to take ITC carried forward in return file
under earlier law
Entitle to take credit of duties paid on input held
in stock related to exempted goods or
services
SITUATION III- ALREADY REGISTER MANUFACTURE OF EXEMPTED AS WELL NON-EXEMPTED GOODS
PURCHASE RETURN OF EXEMPTED GOODS
Remove removed exempted goods under earlier law
Removal is within 6 months before appointed date
Return by register person within 6 months from the date of applicability
of GSTOR
Return by unregister person
No taxes will be payable by person returning goods
Return by register taxable person after 6 months from the date of applicability of GST
GST will be payable by person returning goods i.e. treated as fresh supply under GST
PURCHASE RETURN OF DUTY PAID GOODS
Removed duty paid goods under earlier law
Removal is within 6 months before appointed date
Goods are return from person who is not registered under GST
Return within 6 months from the date of applicability of GST
Refund of tax paid under earlier law may be claimed on receipt of goods.
Return by person register under GST
GST will be payable by person returning goods i.e. treated as fresh supply under GST
Return after 6 months from the date of applicability of GST
No Refund allowed
SALE OF CAPITAL GOODS ON WHICH ITC IS TAKEN
Capital Goods means goods the value of which is capitalized in the books of accounts which are used or intended to be used in the course or furtherance of business.The registered taxable person on sale of capital goods shall:
- pay an amount equal to input tax credit taken on such capital goods- reduced by percentage points as prescribed or-tax on the transaction value of such capital goods, whichever is higher.
Particulars Amount
ITC taken on such capital goods xxxx
Less: % prescribed by the Govt xxxx
Total (A) XXXX
Tax on the transaction value of such capital goods (B) XXXX
The taxable person shall pay an amount higher of A or B.
Taxable person registered under normal scheme in existing law
There are unutilized portion of input tax credit under old law
Now Opted for Composition Scheme under GST
Liable to pay credit availed for input held in stock
Reverse credit not availed.
SITUATION IV- SHIFT OVER FROM NORMAL SCHEME TO COMPOSITION SCHEME UNDER GST
CA Nikhil MalaiyaCell: 9545727818
E-mail: [email protected]
CA Mayur ZanwarCell: 9422855595
E-mail: [email protected]
