Question

a)in RWA , it was clarified that gst is payable on sinking fund by way of notification in September 2017, we started levying gst w e f November 2017. now on audit are we to pay the liability from july to october 2017. if yes, then can we pay this liability through the input credit available as on date, even though we have not specified in previous returns the discrepancy the interest of 18% per annum has to be paid, is there any waiver on this at the time of filing Annual return.

b)existing service provider as on 30th june 2017 and also registered in VAT and shifted to GST in july 2017. now in VAT return did not specified vat credit of inputs/goods which were not available then in VAT returns. Now as per section 140(3), it is clear that service provider cannot take input credit. but in GAQ by Department it was clarified that service provider can take , Pl. clarify that can the input credit can be taken of inputs even though the taxable supplies are services and inputs are not used for making taxable supplies.
 

Answer

a) At the time of filing Annual return or during Audit additional liability can be paid through DRC-03 only in cash even if input credit is available in ECL. Further there is no waiver for interest liability at the time of filing Annual return.

b) Last extended date of TRAN-1 for claiming VAT credit has already expired i.e. 31.3.2019. Further as per Section 140(3) of CGST Act you are not eligible to take Input credit as the inputs are not used for making taxable supplies.

Thus now you are not eligible to take that credit. Please quote the FAQ of the department that allows you to take input credit.  (Reply dt.04/06/2019)