paresh (Accountant) (58 Points)
29 December 2009Dear ,
We are manufacturer, We have clar goods under cenvat rules, and availing benifit of cenvat credit, Now as on date we have credit amount of service tax ,excise. & VAT After the applicable of GST From April.2010. These credit are given refund by governmnet or give set off against GST.
Thanks & Regards
Paresh shah
Ashish Ojha
(Chartered Accountant)
(469 Points)
Replied 30 December 2009
First point is that GST is not coming into effect from 1st April 2010... so u have time for adjustments...
The white paper released on GST is silent on the credit of various duties already taken or to be adjusted under previous laws... So any sure shot treatment cannot be given...
The Query u have asked is a perfect example of the legal risk associated with a business. the law is changing and it may turn out either way... So in my personal opinion u should avoid carrying forward of any Credit to the GST era.. because it may happen that credit of some duties may not be allowed to be adjusted or carried forward. ... try to utilise it fully before GST itself.. This opinion of mine is very personal in nature so if u think otherwise than u can do so... This view was originally given by CA Ajay Jain, renowned teacher of Indirect Taxes, but they also said that this is their personal view.
Madhukar N Hiregange
(Chartered Accountant)
(39034 Points)
Replied 11 January 2010
Transitional porovisions under CGST or SGST would be prescribed in 2011 or so when the act and rules will be made available. Then only this answer can be made. It is expected that credits on stocks/ available will be allowed tobe carried forward with some restrictions.
CAclubindia
