Treatment of Stock
A repeated and imminent query which we receive is the treatment of CENVAT and VAT Credit in respect of stock held on June 30, 2017, which will be sold post GST implementation. The treatment would depend on the nature of registration of the organization under the present laws.
This will cover small scale manufacturers who had opted out of excise. This will also cover manufacturers exempt from central excise and thus not registered.
This case will specifically cover the cases of dealers registered as first stage dealers, second stage dealers, registered importers and depots of manufacturers.
A trader registered under VAT can carry forward the VAT credit. He is also eligible to claim actual / notional credit of excise duty on duty paid stock
Such a person is eligible to take credit of VAT, Excise duty, Additional Excise Duty, CVD and SAD in respect of raw materials, finished and semi-finished stock held on 30th June 2017
A trader will be eligible claim credit of VAT, Excise duty and eligible customs duties paid on stock as per actuals. In case of absence of duty paying document, a notional credit scheme is also available
A person registered under Central Excise and VAT laws is eligible to carry forward credit availed in the returns. Refer to the detailed provisions to know more
A person registered under all the current laws is eligible to carry forward credit availed in the returns. Refer to the detailed provisions to know more
A service provider can carry forward unutilised cenvat credit in the GST regime. There are special provision for service provider having centralised registration