Manufacturer registered under excise, VAT and service tax


Return filed under Central excise, Service Tax or VAT law shows an outstanding or an excess unutilized balance of CENVAT credit / 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
  • CENVAT Credit (shown in Central excise and Service Tax Return) will be carried forward as CGST credit
  • The Central Excise credit can be carried forward only in the same State registration in which GST registration is availed
  • In case of Centralized registration under Service tax, credit can be carried forward as CGST credit in any of the GST registrations
  • 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:

  • The Credit is not admissible under the GST Law
  • All returns for the period January 2017 to June 2017 have not been duly filed under the Central Excise, VAT and Service Tax 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 Central excise, VAT and service tax does not show an outstanding unutilsed balance of input tax credit

Where the entire credit availed has been utilised and carried forward balance is reflected in the returns:

  • No credit shall be carried forward under GST
  • No requirement to file any detail with respect to the stock in GST FORM TRAN-1
  • However, unavailed credit on capital goods can be availed even if the same is not carried forward in the said returns. In that case, details needs to be given in GST Form Trans 1