Saturday, July 8, 2017

gst transition

Credit Carried Forward (CCF) under the present GST law 

> CCF (Credit Carried Forward) of CENVAT/VAT in the last return can be claimed as a credit under GST. 

(VAT – ECL  of state tax and CENVAt – ECL of central tax)

> GST TRAN-I shall be filed within 90 days

> For claiming CCF in vat, relatable to CST transactions 

> Value of CSST transactions i.e., CST sales, branch transfers, deemed exports shall be given with form number.

> in case forms not received-credit shall be reduced to the extent of balance tax.

> If forms are submitted later refund can be claimed later.

Un-Utilized Credit on Capital Goods Under CENVET.

> Un-Utilized CENVAT Credit on Capital Goods can be utilized as ITC under GST.

> Already Utilized Portion of CENVAT Credit shall be specified in the GST Tran-I

Stocks held by Certain Dealers

Tax paid on stocks can be taken as Credit in GST, If in Possession of Invoice with tax details: 

Persons who are not liable to be registered under the existing law but liable to be registered under GST.

  • Such invoice is not earlier than 12 months.
  • Stock statement is submitted 
Stock of goods on which credit is availed can be identified by the registered person.

CENVAT / VAT Paid on Stocks can be taken as credit in GST if NOT in Possession of Invoice with tax details:

Credit shall be given after GST is paid at following rates and utilized within 6 tax periods.
  • If CGST / SGST > or = 9% then credit is 60% of GST paid.
  • If CGST / SGST < 9% then credit is 40% of GST paid.
  • If IGST > or = 18% then credit is 30% of IGST paid.
  • If IGST < 18% then credit is 20% of IGST paid.

Dealers with Taxable and Non Taxable Goods

Dealers who have paid tax before 1st July 2017 but will receive goods after appointed day

Dealers Paying Tax at Composition Rates

  • Inputs shall be used/ intended to be used for making taxable supplies under this act
  • Not under composition under GST
  • Eligible for such inputs under the act

  • Shall be in Possession of Invoice.
  • Such invoice ought not to have been issued beyond 12 months from the appointed day.

GST - Job Workers

GST - Semi finished Goods sent for Manufacturing Process

> ITC to be Recovered, If Goods not returned in time 

GST Job work: Finished goods sent for test.

The above 3 conditions will be applicable only if

A) Person dispatching the goods & the job worker both
Provide details of such inputs, on appointed day as prescribed

Goods sold prior to 1st July 2017 but 
Returned After 1st July 2017

Goods sold under existing law but returned under the act 
(sales returns)

Price revision of goods sold prior to appointed day but revision after appointed day

> Debit note / credit note issued for price revision of an earlier contract shall be treated as issued as if in respect of supply under GST.

Goods sent on Approval Basis

> If such goods are rejected and returned within 6 months from appointed day then no tax shall be payable under GST.

Presentation by:
Sri. N. Sai Kishore, Deputy Commissioner (Telangana C.T)
S. V. Kasi Visweswara Rao, Deputy Commissioner (Telangana CT) 


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