Are you worried about what will happen to the input tax credit [ITC] on your inputs [held as input/ semi-finished goods/ finished goods/capital goods upon transition to GST?

The law allows you to carry forward your input tax credit and ensures that no ITC is lost while migrating into the new regime. The following table provides the details:-

S. No. CATEGORY OF TAXPAYER DETAILS TO BE PROVIDED AMOUNT OF ITC AVAILABLE
1 Manufacturers and Service providers already registered under existing Central laws. Closing balance of Cenvat credit. Closing balance of Cenvat credit as per last return.
2 Manufacturers and Service providers already registered under existing Central laws. Balance of un-availed Cenvat credit on capital goods. Amount of Cenvat credit on Capital Goods not availed earlier.
3 Manufacturers and Service providers Supplying Exempted Goods / Services under existing laws (not liable to be registered under existing Central laws)._ Stock of inputs (held as inputs / semi-finished goods / finished goods) to he used for making taxable supplies whew duty paid invoices available. Amount of duty paid as per available duty paid invoice.
4 Trader (not liable to he registered under existing Central laws). Stock of inputs (held as inputs / semi-finished goods/ finished goods) to he used for making taxable supplies where duty paid invoices available. Amount of duty paid as per invoice details submitted.
5 Trader (not liable to be  registered under existing Central laws). Stock of inputs (held as inputs/semi-finished goods/ finished goods to be used for making taxable supplies where duty paid invoice not available. In case of intra-State supplies

  • 60% of the Central tax paid (in case rate of total tax is 18% or 28%).
  • 40% of the central tax paid (in case rate of total tax is tax 5% or 12%).

In case of inter-State Supplies

  • 30% of the integrated tax paid (in case rate of total tax is 18% or 28%).
  • 20% of the integrated tax paid (in case rate of total tax is 5% or 12%).

Form to be used For SI. Nos. 1 to 4, Form GST TRANS 1 is to be used, while for SI. No. 5, GST TRANS 2 Form is to be used

Timeline for submission: For SI. Nos. 1 to 4. the form is to be submitted on or before 30.09.2017. Commissioner can extend the time limit for another 90 days.

More than one Form can be filed.

For SI. No.5. the form is to be submitted at the end each of the first six months.

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5 responses to “Input tax credit will not be lost in transition to GST”

  1. alwar malt and agro foods manufacturers comapy limited says:

    Suggestion of IMFL business is activities the account of book and if any change I.e.present time. Vat % 20 %, Bottling charges of service Tax % 15 % is our activities

  2. P.C.Saini says:

    Suggestion of IMFL business is activities the account of book and if any change I.e.present time. Vat % 20 %, Bottling charges of service Tax % 15 % is our activities

  3. P.C.Saini says:

    Suggestion of IMFL business is activities the account of book and if any change I.e.present time. Vat % 20 %, Bottling charges of service Tax % 15 % is our activities

  4. unnikrishnan.v says:

    Thanks for very useful details.
    However, what about the ‘Advance tax’ collected/paid by Dealers in respect of items like Tiles,Granite slabs etc to te State VAT ,say @14.5% in Kerala.Whether any credit/adjustment possible against the stocks as on 30/06/2017.for the GST @ 28% on these items from 1/7/2017.

  5. Shakeel Basha says:

    May I know why AP state Vat Dept requires Closing Stock as on 31st March 2017. Vat return can be filed till May 2017 Only June input cannot be claimed.
    Are statements Valid????

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