Go AD-Free with CAclubindia Pro and get a FREE CCI Coffee Mug. Subscribe Now!

Input avail on closing stock

abhinandan (accountant) (22 Points)

26 June 2017

Dear Sir, our company is registered as manufacturer and trader in delhi vat and we have CST paid closing stock. our product is taxable in GST, can i take input credit on that stock?

Reply
Follow
Share

2 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (185387 Points)
Replied 26 June 2017

Upgrade to CAclubindia Pro. Subscribe Now!

Bharat Patel (6 Points)
Replied 26 June 2017

No, input tax credit of CST is not available. As per sub - section (3),(4) & (6) of Section 140 of GST ACT, registered person shall be entitled to take, in his electronic credit ledger, credit of eligible duties in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the appointed day.
As per explanation 1 of the said Act for the purposes of sub-sections [3], [4] and [6], the expression "eligible duties" does not include 'Sales tax'. Therefore, credit of CST is not available.