Utilization of cenvat for edu. cess & hs edu.cess
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
19 January 2016
Dear Expert
Pls let me know if any notification is their which allows us to utilize the edu.cess & SH Edu.cess from Cenvat
Pls let me know if any notification is their which allows us to utilize the edu.cess & SH Edu.cess from Cenvat
24 January 2016
The goods received on or after 1.3.2015 you can take and utilise the cenvat credit of edu. cess and sh edu. cess. The closing balane of edu. cess and hs cess of the Fabaruary you cannot utilise the cenvat credit.
Querist : Anonymous
Querist :
Anonymous
(Querist)
25 January 2016
Dear Sir
Pls read my question properly
Pls read my question properly
02 August 2025
You're asking about the **utilization of Education Cess (2%) and Secondary & Higher Education Cess (1%)** from the **CENVAT credit** pool — particularly in light of changes post **1st March 2015**. Here's a clarified explanation with reference to relevant notifications:
---
### 🔍 Background:
Until 28th February 2015:
* **CENVAT credit of Education Cess and SHE Cess** was allowed only for **payment of the same cess**, not for Basic Excise Duty or Service Tax.
* Separate accounting was required for:
* Basic Excise Duty
* Education Cess
* SHE Cess
---
### 📌 What changed on **1st March 2015**?
As per:
> 🗂 **Notification No. 12/2015-CE (N.T.) dated 30.04.2015**,
> and
> 🗂 **Notification No. 12/2015-ST dated 30.04.2015**,
CENVAT credit of **Education Cess and Secondary & Higher Education Cess** is **no longer separately allowed**.
* Goods and services received **on or after 01.03.2015**:
**No separate CENVAT credit for education cess and SHE cess**.
It is merged into the **basic CENVAT pool** and only **Basic Excise Duty**/Service Tax is applicable.
* **Closing balances** of Edu. Cess and SHE Cess **as on 28.02.2015**:
❌ **Cannot** be carried forward or utilized against basic excise duty or service tax.
---
### 🚫 No Utilization of Old Cess Balances:
There is **no notification or circular** that allows **utilization of closing balance** of Edu. Cess and SHE Cess after 01.03.2015.
CBEC has made it clear in **FAQs and Education Guides** that:
> ❗ Credit of Education Cess and Secondary & Higher Education Cess lying in balance as on 28.02.2015 **shall lapse** and **cannot be used**.
---
### ✅ However:
* If any inputs or services were received **before 01.03.2015**, and the cess credit was taken in time, it could be used **only to pay that same cess** (not Basic Excise Duty or Service Tax).
* **Post-01.03.2015**, since cess was abolished, **credit became redundant**.
---
### 🔚 Summary:
| Scenario | Credit of Edu. Cess/SHE Cess |
| --------------------------------------- | --------------------------------- |
| Inputs received **before 01.03.2015** | Usable only against the same cess |
| Inputs received **on/after 01.03.2015** | No cess applicable → No credit |
| Closing balance as on 28.02.2015 | ❌ Cannot be utilized; lapses |
---
If you need a draft representation to Excise authorities or internal clarification note, let me know.
---
### 🔍 Background:
Until 28th February 2015:
* **CENVAT credit of Education Cess and SHE Cess** was allowed only for **payment of the same cess**, not for Basic Excise Duty or Service Tax.
* Separate accounting was required for:
* Basic Excise Duty
* Education Cess
* SHE Cess
---
### 📌 What changed on **1st March 2015**?
As per:
> 🗂 **Notification No. 12/2015-CE (N.T.) dated 30.04.2015**,
> and
> 🗂 **Notification No. 12/2015-ST dated 30.04.2015**,
CENVAT credit of **Education Cess and Secondary & Higher Education Cess** is **no longer separately allowed**.
* Goods and services received **on or after 01.03.2015**:
**No separate CENVAT credit for education cess and SHE cess**.
It is merged into the **basic CENVAT pool** and only **Basic Excise Duty**/Service Tax is applicable.
* **Closing balances** of Edu. Cess and SHE Cess **as on 28.02.2015**:
❌ **Cannot** be carried forward or utilized against basic excise duty or service tax.
---
### 🚫 No Utilization of Old Cess Balances:
There is **no notification or circular** that allows **utilization of closing balance** of Edu. Cess and SHE Cess after 01.03.2015.
CBEC has made it clear in **FAQs and Education Guides** that:
> ❗ Credit of Education Cess and Secondary & Higher Education Cess lying in balance as on 28.02.2015 **shall lapse** and **cannot be used**.
---
### ✅ However:
* If any inputs or services were received **before 01.03.2015**, and the cess credit was taken in time, it could be used **only to pay that same cess** (not Basic Excise Duty or Service Tax).
* **Post-01.03.2015**, since cess was abolished, **credit became redundant**.
---
### 🔚 Summary:
| Scenario | Credit of Edu. Cess/SHE Cess |
| --------------------------------------- | --------------------------------- |
| Inputs received **before 01.03.2015** | Usable only against the same cess |
| Inputs received **on/after 01.03.2015** | No cess applicable → No credit |
| Closing balance as on 28.02.2015 | ❌ Cannot be utilized; lapses |
---
If you need a draft representation to Excise authorities or internal clarification note, let me know.
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