Question 46: In vat regime a trader
sale his item on 5% tax. in GST it sold his stock at 18%. he has no excise
invoice. is there any credit will provided to him by govt.. If yes how can we
claim '
Answer Section 140(3) of CGST Act contains following provsion
Provided that where a registered person, other than a manufacturer or a supplier
of services, is not in possession of an invoice or any other documents
evidencing payment of duty in respect of inputs, then, such registered person
shall, subject to such conditions, limitations and safeguards as may be
prescribed, including that the said taxable person shall pass on the benefit of
such credit by way of reduced prices to the recipient, be allowed to take credit
at such rate and in such manner as may be prescribed.
Rule 117(4)
(a) (i) A registered person who was not registered under the existing law shall,
in accordance with the proviso to sub-section (3) of section 140, be allowed to
avail of input tax credit on goods (on which the duty of central excise or, as
the case may be, additional duties of customs under sub-section (1) of section 3
of the Customs Tariff Act, 1975, is leviable) held in stock on the appointed day
in respect of which he is not in possession of any document evidencing payment
of central excise duty.
(ii) The input tax credit referred to in sub-clause (i) shall be allowed at the
rate of sixty per cent. on such goods which attract central tax at the rate of
nine per cent. or more and forty per cent. for other goods of the central tax
applicable on supply of such goods after the appointed date and shall be
credited after the central tax payable on such supply has been paid:
Provided that where integrated tax is paid on such goods, the amount of credit
shall be allowed at the rate of thirty per cent. and twenty per cent.
respectively of the said tax;
(iii) The scheme shall be available for six tax periods from the appointed date.
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So you can take credit of sixty percent but the problem is that you had to clear
these goods with in the prescribed time
Please check that conditioned applicable are fulfilled relating to supply of
goods or not.(REPLY dt. 23/1/2018)