GST- Directions under Section 168 of the CGST Act regarding non- transition of CENVAT credit under section 140 of CGST Act or non- utilization thereof in certain cases- _ Circular No. 33/07/2018-GST dated 23.02.2018- Communication thereof - GST - GST TRADE NOTICE NO. 09/2018

GOVERNMENT OF INDIA: MINISTRY OF FINANCE : DEPARTMENT OF REVENUE OFFICE OF THE COMMISSIONER OF GST AND CENTRAL EXCISE, PUDUCHERRY GOUBERT AVENUE, (BEACH ROAD) PUDUCHERRY 605001 C. No. IV/16/01/2018- GST Dated: 02-03-2018 GST TRADE NOTICE NO. 09/2018 Sub: GST- Directions under Section 168 of the CGST Act regarding non- transition of CENVAT credit under section 140 of CGST Act or non- utilization thereof in certain cases- _ Circular No. 33/07/2018-GST dated 23.02.2018- Communication thereof - Reg. The Central Board of Excise Customs [CBEC] has issued Circular No. 33/07/2018-GST dated 23.02.2018 pertaining to directions under Section 168 of the CGST Act regarding non-utilisation of disputed credit carried forward and non- transition of blocked credit. The gist of the aforesaid Circular is detailed as hereunder: 2. Non-utilization of Disputed Credit carried forward - Where in relation to a certain CENVAT credit pertaining to which a show cause notice was issued under Rule 14 of the CENVAT Credit Rules, 2004, which has been adjudicated and where in the last adjudication order or the last Order-in-Appeal, as it existed on 1st July, 2017, it was held that such CENVAT credit is not admissible, then such CENVAT credit (herein and after referred to as disputed credit ), credited to the electronic credit ledger shall not be utilized by a registered taxable person to discharge his tax liability under the CGST Act,2017 or the IGST Act, 2017, till the Order-in-Original or the last Order-in- Appeal, as the case may be, holding that disputed credit as inadmissible is in existence, If the said disputed credit is utilised, it shall be recovered from the tax payer, with interest and penalty as per the provisions of the Act. 3. Non-transition of Blocked Credit - As per Section 140(1)(i) of the Act, a registered person shall not take in his electronic credit ledger, amount of CENVAT credit as is carried forward in the return relating to the period ending with the day immediately preceding the appointed day which is not eligible under the Act in terms of sub-section (5) of section 17 (hereinafter referred to as 'blocked credit). If the said blocked credit is carried forward and credited to the electronic credit ledger in contravention of section 140 of the Act, it shall not be utilized by a registered taxable person to discharge his tax liability under the CGST Act, 2017 or the IGST Act, 2017, and shall be recovered from the tax payer with interest and penalty as per the provisions of the Act. 4. Undertaking in case of disputed/ blocked credit amount exceeding ₹ 10 Lakhs - In all cases where the disputed credit or blocked credit is higher than Rupees Ten lakhs, the taxpayers shall also submit an undertaking to the jurisdictional officer of the Central Government that such credit shall not be utilized or has not been availed as transitional credit, as the case may be. 5. This Trade Notice is being issued so as to sensitise the trade and field formations about the contents of the aforesaid reference and for complete details, the respective reference may please be referred in the CBEC's website www/cbec.gov.in. 6. The Trade Industry Associations/ Chamber of Commerce are requested to bring the contents of the Trade Notice to the knowledge of all their Members for information and necessary action. (U. NIRANJAN) COMMISSIONER