40% and 60% credit concept
sneha (ACCOUNTS AND TAX MANAGER) (134 Points)
09 June 2017
plz guide me about input tax credit of 40% or 60% is available on which type of goods?
47 Replies
Piyush Tanwar
(Assistant Manager - Accounts)
(1432 Points)
Replied 09 June 2017
It is basically the concept of Deemed Credit under GST.
Persons who don't have excise invoices, will be eligible to take credit in the following manner:-
- For Goods taxable at 18% or above :- Credit shall be allowed at the rate of 60% of CGST payable on that goods - so if the rate is 18% then credit will be available available @ 5.4% (60% of 9% CGST).
- For goods other than above :- Credit shall be allowed at the rate of 40% of CGST payable on that goods - so if the rate is 12% then credit will be available @ 2.4% (40% of 6% CGST).
** Credit in the above deemed credit scheme will be available only once the said goods are sold and GST is paid. It's like a cash back scheme.
** To take the credit in this scheme following conditions will have to be fulfilled:-
- Such goods were not unconditionally exempt from excise.
- The document for procurement of such goods is available.
- The stock of goods on which the credit is availed is so stored that it can be easily identified by the registered person.
** Deemed Credit scheme will go on for 6 months from GST Date, so stocks lying as on 30th June have to be sold maximum upto 31st December 2017.
** No Credit will be available if these goods are sold after December 2017.
Thanks & Regards
Piyush Tanwar
CA Finalist and Internal Auditor
Mobile - 9717468521
Piyush Tanwar
(Assistant Manager - Accounts)
(1432 Points)
Replied 09 June 2017
Deemed credit scheme comes under the Transition Rules.
Pawan Singhal
(chartered accountant)
(655 Points)
Replied 09 June 2017
Is itc on grey fabrics allowed if WE HAVE Not duty paying document. and excise duty is paid on i st stage when fiber to yarn stage...
sneha
(ACCOUNTS AND TAX MANAGER)
(134 Points)
Replied 09 June 2017
what about invoices and documents issued and maintained properly?
Nimish
(B.com)
(53 Points)
Replied 09 June 2017
Declaration to be made under clause (c) of sub-section (11) of section 142
Every person to whom the provision of clause (c) of sub-section (11) of section 142 applies,
shall within a period of ninety days of the appointed day, submit a declaration electronically
in FORM GST TRAN-1 furnishing the proportion of supply on which VAT or service tax has
been paid before the appointed day but the supply is made after the appointed day, and the
ITC admissible thereon.
can somebody give example
dhirajpareek
(win)
(306 Points)
Replied 09 June 2017
Is itc on grey fabrics allowed if WE HAVE Not duty paying document. and excise duty is paid on i st stage when fiber to yarn stage...
need ans
Ram kr.
(Buisness)
(883 Points)
Replied 09 June 2017
Whether a consignment agent of a company will be eligible for 100% credit or deemed credit category. He is registered in service tax and sales tax department. He is not registered in central excise. Pl. advice.
Ram kr.
(Buisness)
(883 Points)
Replied 09 June 2017
Whether a consignment agent of a company will be eligible for 100% credit or deemed credit catagory. He is working on commission basis and registered in service tax and sales tax department. He is not registered in central excise. Pl advice.
Thanks
MUNAF PATEL
(TAX CONSULTANT)
(54 Points)
Replied 09 June 2017
60% or 40% ITC on CGST. What about SGST ??
Tejveer Singh
(Indirect Tax Consultant)
(54 Points)
Replied 10 June 2017
The same condition should be apply.
Accounts Guru
(2 Points)
Replied 10 June 2017
40% input tax credit is available for the closing stock, where the taxable person is not in possession of an invoice or prescribed document evidencing the payment of inputs, he shall be entitles to credit at the rate of 40% of tax applicable under CGST and UGST on supply of such goods after the appointed date.
This 40% will be credited after the tax payable on such supply whether CGST or UTGST whichever is applicable, has been paid.
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