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TMI BlogTransitional arrangements for input tax credit [ Section 140 ]X X X X Extracts X X X X X X X X Extracts X X X X ..... ssioner may, on the recommendations of the GST Council, extend the period by a further period not exceeding 90 days. Unavailed CENVAT Credit on Capital goods , to be allowed in certain situations [ Section 140(2) ] A registered Person other than a person opting to pay tax under section 10, shall be entitied to take, in his Electronic Credit Ledger , credit of the unavailed CENVAT credit in respect of capital goods, not carried forward in a return, furnished under the existing law by him, for the period ending with the day immediately preceding the appointed day within such time and in such manner as may be prescribed Explanation Unavailed Cenvat Credit on capital goods = Amount of cenvat credit eligible on capital goods Minus Cenvat credit already availed Eligibility of credit and restriction Every registered person entitled to take credit of input tax shall be submit an application electronically in FORM GST TRAN-1. Application shall be submitted Within 90 days of the appointment day. the commissioner may, on the recommendations of the GST Council, extend the period by a further period not exceeding 90 days. The application shall also specify separately the following particulars i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rvices under Chapter V of the Finance Act, 1994, Such exempted goods or exempted services are liable to tax under this Act. He held the duty paid stock in hand on the appointment day on which he has not claimed Cenvet credit. he also has carried forward tax credit in the last return preceding the appointment day. Unclaimed credit pertains to eligible duties in respect of input held in stock and inputs contained in semi -finished goods or finished goods held in stock on the appointment day. Eligibility of credit and restriction It shall be entitled to take, in his electronic credit ledger,- the amount of CENVAT credit carried forward in a return furnished under the existing law by him in accordance with the provisions of section 140(1); and the amount of CENVAT 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, relating to such exempted goods or services, in accordance with the provisions of section 140(3). Amount of credit shall be calculated in such manner as may be prescribed. Unclaimed duties shall be claimed as CGST in his electronic credit ledger. Credit of eligible duties or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 140(8) ] Where a registered person having centralised registration under the existing law has obtained a registration under this Act, such person shall be allowed to take, in his electronic credit ledger, credit of the amount of CENVAT credit carried forward in a return, furnished under the existing law by him, in respect of the period ending with the day immediately preceding the appointed day. Eligibility of credit and restriction if the registered person furnishes his return for the period ending with the day immediately preceding the appointed day within three months of the appointed day, such credit shall be allowed subject to the condition that the said return is either an original return or a revised return where the credit has been reduced from that claimed earlier : the registered person shall not be allowed to take credit unless the said amount is admissible as input tax credit under this Act: such credit may be transferred to any of the registered persons having the same Permanent Account Number for which the centralised registration was obtained under the existing law. ITC Reversal Reclaim [ section 140(9) ] If CENVAT credit availed for input services provided und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oubts, it is hereby clarified that the expression eligible duties and taxes excludes any cess which has not been specified in Explanation 1 or Explanation 2 and any cess which is collected as additional duty of customs under section 3(1) of the Customs Tariff Act, 1975. Carry forward or availing wrong Cenvat Credit - Recovery [ Circular No. 33/07/2018-GST Dated 23rd Feb., 2018 ] 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 in terms of sub-section (1), (2), (3), (4), (5) (6) or (8) of section 140 of the Act , shall not be utilized by a registered taxable person to discharge his tax liability under this Act or under the IGST Act, 2017, till the order-in-original or the last order-in-appeal, as the case may be, holding that disputed credit a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... VAT credit had been initiated, whether before, on or after the appointed day, under the existing law, any amount of such credit becomes recoverable, the same shall, unless recovered under the existing law, be recovered as an arrear of tax under the CGST Act [ Section 142(6)(b) of the CGST Act refers]. ii) Recovery of CENVAT Credit carried forward wrongly: CENVAT credit of central excise duty/service tax availed under the existing law may be carried forward in terms of transitional provisions as per section 140 of the CGST Act subject to the conditions prescribed therein. Any credit which is not admissible in terms of section 140 of the CGST Act shall not be allowed to be transitioned or carried forward and the same shall be recovered as an arrear of tax under section 79 of the CGST Act. iii) Recovery of arrears of central excise duty and service tax: Where in pursuance of an assessment or adjudication proceedings instituted, whether before, on or after the appointed day, under the existing law, any amount of tax, interest, fine or penalty becomes recoverable, the same shall, unless recovered under the existing law, be recovered as an arrear of tax under the CGST Act [ Section 142(8 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and late fee in relation to CENVAT credit wrongly carried forward, arising out of any of the situations discussed in para 3 above, shall be recovered as interest, penalty and late fee of central tax to be paid through the utilization of the amount available in electronic cash ledger of the registered person and the same shall be recorded in Part II of the Electronic Liability Register ( FORM GST PMT-01 ). (b) The arrears of interest, penalty and late fee in relation to arrears of central excise duty, service tax or wrongly availed CENVAT credit thereof under the existing law arising out of any of the situations discussed in para 3 above, shall, unless recovered under the existing law, be recovered as interest, penalty and late fee of central tax to be paid through the utilization of the amount available in the electronic cash ledger of the registered person and the same shall be recorded in Part II of the Electronic Liability Register ( FORM GST PMT-01 ). 4.3 Payment of central excise duty service tax on account of returns filed for the past period: The registered person may file Central Excise / Service Tax return for the period prior to 1st July, 2017 by logging onto www.aces.go ..... X X X X Extracts X X X X X X X X Extracts X X X X
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