STOCKS TRANSITION CREDIT
We are trader registered in Excise as importer & 1st stage dealer. Stocks transition credit in RG23D older than 1 year and within 1 year?
Reply by GST@GoI
Input tax credit will be allowed only for inputs for last twelve months.
Transitional arrangements for input tax credit is defined in section 140(1) of CGST Act.
Relevant extracts is as follows:
A registered person, who was either paying tax at a fixed rate or paying a fixed amount in lieu of the tax payable under the existing law 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 goods held in stock on the appointed day 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;
(v) such invoices or other prescribed documents were issued not earlier than twelve months immediately preceding the appointed day.
Stocks transition credit
To view all GST Updates Click on given link below
Visit our partner website also wealthmaxi. Which is about mutual funds to view this site go to given below link