Itc b/f
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
19 August 2017
Dear Sir,
In VAT regime we use to purchase timber @14.5% and sold it interstate @2% against Form C. Therefore our ITC balance has reached to the sum of Rs. 15 lacs on 31/03/2017 with no physical stock. In 2016-17 we filed our returns as nil and c/f our balance itc on 30/06/2017 in the same return.
Now I have following queries regarding balance ITC -
1. Whether we can adjust our balance itc against GST liability.
2. As we have no physical stock as on 30/06/2017 then in which col. of Trans 1 we would claim balance ITC?
In VAT regime we use to purchase timber @14.5% and sold it interstate @2% against Form C. Therefore our ITC balance has reached to the sum of Rs. 15 lacs on 31/03/2017 with no physical stock. In 2016-17 we filed our returns as nil and c/f our balance itc on 30/06/2017 in the same return.
Now I have following queries regarding balance ITC -
1. Whether we can adjust our balance itc against GST liability.
2. As we have no physical stock as on 30/06/2017 then in which col. of Trans 1 we would claim balance ITC?
19 August 2017
You can transfer balance of credit to GST and can also use the same
Querist : Anonymous
Querist :
Anonymous
(Querist)
19 August 2017
in which col. of trans 1 I should claim this itc?
02 August 2024
To address your queries about adjusting your balance ITC (Input Tax Credit) from the VAT regime against GST liability, here’s a detailed guide:
### 1. **Adjustment of Balance ITC Against GST Liability**
Yes, you can adjust your balance ITC from the VAT regime against your GST liability, provided that the credit was valid and the transition is compliant with the GST rules. Here’s how it works:
- **Eligibility**: The ITC carried forward from the VAT regime can be utilized against your GST liabilities, subject to the conditions laid out under GST law.
- **Procedure**: You need to file Form GST TRAN-1 to claim the balance ITC as carried forward from the VAT regime.
### 2. **Filing Balance ITC in GST TRAN-1**
Since you mentioned that you had no physical stock as of 30/06/2017, you need to handle the balance ITC accordingly:
- **No Physical Stock**: If you had no physical stock, the ITC is considered as a credit of VAT paid on inputs that were not used in stock but were still eligible to carry forward.
**Steps to Claim Balance ITC in GST TRAN-1:**
1. **Filing Form GST TRAN-1**:
- **Part A**: In the GST TRAN-1 form, you will need to enter the details of the balance ITC carried forward from the VAT regime.
- **Column**: Enter the balance ITC in **Table 7** of GST TRAN-1 under the section “ITC carried forward from earlier regime”:
- **Table 7(a)**: For ITC carried forward under VAT, mention the total amount of ITC carried forward.
- **Table 7(b)**: You may also need to provide details of the total tax credit carried forward.
2. **Details Required**:
- **Nature of ITC**: Ensure you are providing details as per the earlier tax regime, including VAT.
- **Supporting Documentation**: Maintain proper documentation and records to substantiate the ITC claim.
3. **Verification**:
- **Cross-check**: Verify the details with your VAT records and ensure that the amount is correctly carried forward as per the last filed VAT return.
4. **Submission**:
- **Online Filing**: File the GST TRAN-1 form online through the GST portal.
### **Important Considerations**
- **Compliance**: Ensure that the ITC carried forward is compliant with the GST law and that all conditions for claiming transitional ITC are met.
- **Records**: Keep detailed records and documentation of the VAT ITC claimed and carried forward, as this will be crucial for audit purposes and compliance checks.
**Note**: It is advisable to consult with a GST expert or tax consultant for personalized guidance and to ensure that the transitional ITC is correctly claimed and utilized as per the GST regulations.
### 1. **Adjustment of Balance ITC Against GST Liability**
Yes, you can adjust your balance ITC from the VAT regime against your GST liability, provided that the credit was valid and the transition is compliant with the GST rules. Here’s how it works:
- **Eligibility**: The ITC carried forward from the VAT regime can be utilized against your GST liabilities, subject to the conditions laid out under GST law.
- **Procedure**: You need to file Form GST TRAN-1 to claim the balance ITC as carried forward from the VAT regime.
### 2. **Filing Balance ITC in GST TRAN-1**
Since you mentioned that you had no physical stock as of 30/06/2017, you need to handle the balance ITC accordingly:
- **No Physical Stock**: If you had no physical stock, the ITC is considered as a credit of VAT paid on inputs that were not used in stock but were still eligible to carry forward.
**Steps to Claim Balance ITC in GST TRAN-1:**
1. **Filing Form GST TRAN-1**:
- **Part A**: In the GST TRAN-1 form, you will need to enter the details of the balance ITC carried forward from the VAT regime.
- **Column**: Enter the balance ITC in **Table 7** of GST TRAN-1 under the section “ITC carried forward from earlier regime”:
- **Table 7(a)**: For ITC carried forward under VAT, mention the total amount of ITC carried forward.
- **Table 7(b)**: You may also need to provide details of the total tax credit carried forward.
2. **Details Required**:
- **Nature of ITC**: Ensure you are providing details as per the earlier tax regime, including VAT.
- **Supporting Documentation**: Maintain proper documentation and records to substantiate the ITC claim.
3. **Verification**:
- **Cross-check**: Verify the details with your VAT records and ensure that the amount is correctly carried forward as per the last filed VAT return.
4. **Submission**:
- **Online Filing**: File the GST TRAN-1 form online through the GST portal.
### **Important Considerations**
- **Compliance**: Ensure that the ITC carried forward is compliant with the GST law and that all conditions for claiming transitional ITC are met.
- **Records**: Keep detailed records and documentation of the VAT ITC claimed and carried forward, as this will be crucial for audit purposes and compliance checks.
**Note**: It is advisable to consult with a GST expert or tax consultant for personalized guidance and to ensure that the transitional ITC is correctly claimed and utilized as per the GST regulations.
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