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credit on Stock held

11 June 2017

Can a dealer claim Credit of 40/60 % for cosmetics goods held in stock on 30.6.17 purchased from a manufacturer in Baddi (excise free zone) on which no excise duty paid by manufacturer?

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6 Replies

Preeti (Team_GSTSoln) (Team GST Experts) (1926 Points)
Replied 11 June 2017

yes but u will get credit as per 3(7) of ccr rule not as per 40/60 concept

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Govind JK Kolappan (General Manager Finance) (64 Points)
Replied 11 June 2017

not sure how the dealer can take input credit, when the manufacturer has not raised a central excise invoice

in my view for transitional credit, we should have duty paid document or sales tax suffered document and in present law it should be eligible for input credit. in current case i am not sure whether the dealer has excise duty paid invoice

Thanks

Preeti (Team_GSTSoln) (Team GST Experts) (1926 Points)
Replied 11 June 2017

https://www.gstsoln.com/all-about-transitional-provisions-us-140-compiled-with-relevant-rules-in-general-language-from-business-point/ plz follow the link govind for all your queries. point no 3 is relevant to your query

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Govind JK Kolappan (General Manager Finance) (64 Points)
Replied 11 June 2017

Dear Madam

Thank you , let me see the same and i think it will be very useful

as of now we were of the view that only with TAx or Central excuse suffered invoice , showing the tax / duty alone is eligible for transitional credit

in the same line we have asked our accouts staff to keep record

let me check this thank you very much

Govind

Chennai