CBEC issues FAQs on IT Sector, Gems & Jewellery [Read FAQs]
Read more at: http://www.taxscan.in/cbec-issues-faqs-sector-gems-jewellery/10354/
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Return filed under VAT law shows unutilised carry forward balance of input tax credit
•The said unutilized excess input tax credit disclosed in the return filed for period ended 30th June 2017 to be carried forward under GST
•GST FORM TRAN-1 to be filed by 28th September 2017
•The GST FORM TRAN-1 to contain details about the credit to be carried forward
•Excess VAT Credit shown in VAT Returns shall be carried forward as SGST credit.
The balance is not allowed to be carried forward in following cases:
•All returns for the period January 2017 to June 2017 have not been duly filed under the VAT Law
•VAT Credit attributable to claims related to sales under Form C, F, E1, E2, H etc. is not allowed to be carried forward unless the forms have been duly collected within the prescribed time-limits.
•Credit relates to goods manufactured and cleared under exemption notifications as are notified by the Government (none notified till date)
Return filed under VAT does not show excess balance of input tax credit
Where the entire credit availed has been utilised and no outstanding balance of credit is reflected in the return:
•No credit shall be carried forward under GST
•No requirement to file any detail with respect to the stock in GST FORM TRAN-1
Credit of excise duty, CVD and SAD where duty paying document is available
•Goods should be used to make taxable GST supplies
•ITC in respect of the inputs should be eligible under GST
•Excise invoice / Bill of entry evidencing payment of duty is essential
•Date of issue of such document must be on or after July 1, 2016
•GST FORM TRAN-1 to be filed by 28th September 2017 and should contain the details about stock held on June 30, 2017 and credit to be availed
•Credit shall be carried forward as CGST credit
Credit of excise duty, CVD and SAD where duty paying document is not available
•All the above conditions will be applicable except the requirement to have excise invoice / bill of entry
•Such goods are not unconditionally exempt from excise duty
•Notional CGST credit will be available as per the following table after sale of stock:
GST Rate
Notional Excise Duty Credit (of the sale price)
◦5%
◦1%
◦12%
◦2.4%
◦18%
◦5.4%
◦28%
◦8.4%
•The credit will be available only if the stock is sold by December 31, 2017
•Besides GST FORM TRAN-1, GST FORM TRAN-2 needs to be filed on monthly basis to declare sale of old stock and claim its credit
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For TRAN-1 date is 30th sep,2017
TRAN-2 is to be filed at the end of the every month(till 6 monthS after filing TRAN-1)
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GST Update:
Transitional form (TRAN 1 - Transitional ITC & TRAN 3 - CTD ) are now available online on GST Portal.
Under services / returns option.
GST Trans Guide Detailed
https://drive.google.com/file/d/0B6S1XIZpDIXBVkpya0JtSGdsajA/view?usp=drivesdk
