Excise credit

This query is : Resolved

seeta (Querist)
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22 June 2017 Om Sai Ram is dealer and registered under excise he has filled his return manually and have excise credit of Rs.10000.00.
Is Om Sai Ram is eligible to carry forward excise credit in GST.
Kindly reply us on urgent.

seeta

seeta (Querist)
Follow

23 June 2017 Om Sai Ram is dealer and registered under excise he has filled his return manually and have excise credit of Rs.10000.00. Is Om Sai Ram is eligible to carry forward excise credit in GST. Kindly reply us on urgent.

Read more at: https://www.caclubindia.com/experts/excise-credit-2495904.asp

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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21 July 2024 Om Sai Ram, being registered under excise and having excise credit of Rs. 10,000, may be eligible to carry forward this credit under GST, subject to certain conditions and procedures. Here’s how it typically works:

1. **Transition of Credit to GST:**
- Excise duty credit under the earlier regime (Central Excise) is eligible for transition to GST.
- The process involves declaring the excise credit in the GST transition form (GST TRAN-1) while migrating to GST.

2. **Eligibility Criteria:**
- Om Sai Ram must be a registered person under GST.
- The excise duty credit should be eligible as per the provisions of the earlier excise laws (Central Excise Act).

3. **Procedure:**
- Om Sai Ram needs to file GST TRAN-1 form to declare the excise credit.
- The GST TRAN-1 form allows for the declaration of credit accumulated under the earlier regime, which includes excise duty credits.
- The credit amount declared in GST TRAN-1 will be reflected in the electronic credit ledger under GST.

4. **Time Limit:**
- The transition of excise credit to GST must be done within the prescribed time limit. Initially, this was allowed up to December 27, 2017, but the government has extended the deadline multiple times due to various reasons.

5. **Documentation:**
- Om Sai Ram should maintain proper documentation of excise duty payment and credit availed under the earlier regime to support the transition of credit to GST.

**Consultation:**
- It’s advisable for Om Sai Ram to consult with a GST practitioner or tax professional to ensure compliance with the transition provisions and to correctly file the GST TRAN-1 form.

Given these points, Om Sai Ram can potentially carry forward the excise credit of Rs. 10,000 to GST, provided all necessary conditions and procedures are fulfilled as per GST law. For the latest updates and specific guidance, checking with the GST department or a qualified professional would be beneficial.

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