Good Morning All!
I have a query on Input Tax Credit Scheme under Transition Provisions for Excise paid but not holding duty paid document.
As per the rules, 60% of Input Credit is available if the central tax rate is 9% or more & 40% in other cases. If integrated tax is to be paid, it is 30% and 20%.
Please explain this point with an example.
Suppose, I have a stock of some goods valuing Rs. 100. The excise duty paid @ 12.5% under current tax regime. Now GST applicable is 18%.
Q.1 How we will calculate the amount of Input Tax Credit available under GST?
Q.2. Is this 60% or 40% limit is on Excise Duty already paid or output tax liability of GST?
How will treat the excise duty paid in our books of account post GST?
Will it become cost of goods and we will calculate GST on the amount that includes cost of excise duty paid?
CAclubindia
