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TMI BlogInput tax credit on closing stockX X X X Extracts X X X X X X X X Extracts X X X X ..... dear sir our client is a retailer dealing in textile and ready made garments . since fabric is exempt from excise can we claim credit on the stock of fabric held as on 30th June 2017 or should we interpret exemption of fabric as conditional exemption and therefore making them eligible for credit under gst provisions under section 140. Umesh - Reply By KASTURI SETHI - The Reply = Fabric was ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... empted during Central Excise era, Fabric contain duty paid inputs i.e. chemical, dye, yarn or fibre etc. So you can get 40% or 60% credit after intimation of the stock (as on 30.6.17) to the department. At present both textile and ready made garments attract GST. You have two months for applying. - Reply By Umesh Golecha - The Reply = Thanks for the reply , but would like to draw attention to po ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... int no 4 b (I) of transitional provision where it specifically says that in order to qualify for credit under gst (transitional provisions) the goods should not have been unconditionally exempt from excise or subjected to nil rate of duty . Since fabric was exempt will it make it ineligible for credit claim ? - Reply By KASTURI SETHI - The Reply = Deemed credit @40% would be available. You will ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pay GST @5% on the pre-GST stock of fabrics. How you call it exempted after 1.7.17 ? - Input tax credit on closing stock - Query Started By: - Umesh Golecha Dated:- 16-7-2017 Goods and Services Tax - GST - Got 3 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TM ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... I - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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