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TMI BlogTransition Provisions under GSTX X X X Extracts X X X X X X X X Extracts X X X X ..... e categorized under three heads: a) relating to input tax credit b) Continuance of existing procedures such as job work for a reasonable period without any adverse consequence under GST law. c) All claims (pending as well as future) pertaining to existing laws filed before, on or after the appointed day. a) A. Transitional arrangements for ITC Elaborate provisions have been made to carry forward the ITC earned under the existing law. Such credit should be permissible under GST law. However, the taxable person opting for composition scheme would not be eligible for carry forward of existing ITC. ITC of various taxes under the existing laws (CENVAT credit, VAT etc.) would be carried forward as under: a) Closing ba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red person does not possess the document evidencing payment of excise duty/VAT. For such traders who do not have excise or VAT Invoice, there is a scheme to allow credit to them on the duty paid stock. The features of this scheme are as under: i. The scheme is operative only for six months from 1st July, 2017. It is not available to manufacturer or supplier of service. It is available to traders only. ii. Credit @ 60% on such goods which attract central tax @ 9% or more and @ 40% for other goods of GST paid on such stock cleared after 1st July, 2017 would be allowed. However, such goods should not be unconditionally exempted goods or taxed at nil rate under the existing law. It has also been provided that where integrated tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dit on his input stock, semi-finished and finished stock on the appointed date subject to the following conditions: - i. Such Input stock used for taxable supply under this Act. ii. Registered person is not covered under section 10 (composition scheme) of this Act. iii. Registered person is eligible for ITC under this Act. iv. Registered person is in possession of such Invoice or other duty payment documents. v. Such Invoices are not more than twelve months old on appointed day. h) ITC in case of Centralized Registration under service tax: Such registered person can take credit of the amount of CENVAT carry forwarded in return furnished under the existing law, if the original / revised return under the exis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rincipal as per second proviso to section 141(1) of the Act. In addition, the job worker will have to pay the GST on such supplies. In case of semi-finished goods, the manufacturer may transfer the goods to premises of a registered person without payment of tax within the prescribed period. In case of finished goods, the manufacturer may transfer the goods on payment of tax or clear for export within the prescribed period. b) Goods removed before 6 months of the appointed day i.e. 1st July, 2017 but returned within 6 months from 1st July, 2017: If such goods are returned by an unregistered person, then refund of the duty/VAT paid under existing law can be claimed If returned by a registered person, then return of goods shall be t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been repealed. Elaborate provisions have been made to save the pending as well future claims relating to existing law made before, on or after the appointed day i.e. 1st July, 2017. Such proceedings may pertain to refund claims of CENVAT credit/VAT or export related rebate or service tax, such proceedings may either result in recovery of tax or refund. All such cases would be disposed of under the existing law. If any claim for refund of CENVAT credit is fully or partially rejected, the amount so rejected shall lapse. Refund of CENVAT credit shall be paid in cash. There will be no refund of CENVAT if already carry forwarded. If any amount becomes recoverable, the same shall be recovered as arrear of tax under GST Act. Statutory provis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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