Transition of Input Tax Credit

            Transition of Input Tax Credit

Input tax credit claimed in the return filed under previous laws for the period prior to the appointed day (1 July 2017) would be transferred to the electronic credit ledger. Existing manufacturers/dealers can claim the CENVAT credit in respect of input held in stock, semi-finished or finished goods held in stock if the following conditions are satisfied-:

• Such inputs and/or goods are used or intended to be used for making taxable supplies under GST;
• The said taxable person passes on the benefit of such credit by way of reduced prices to the recipient;
• The said taxable person is eligible for input tax credit on such inputs under GST;
• The said taxable person is in possession of invoices and/or other prescribed documents evidencing payment of duty under the earlier the law in respect of such inputs;
• Such invoices and/or other prescribed documents were issued not earlier than twelve months immediately preceding the appointed day;
• The supplier of services is not eligible for any abatement under GST.