Question 30:

Please tell whether the SAD (Special Additional Duty ) should be claimed as SGST or CGST in TRAN-1

Answer:

The credit of Central tax is available as per section 140 of CGST Act. In TRAN-1 credit is to be availed as per Section 140(3). Explanation 1 to section 140(3) in CGST Act is as follows:-

SECTION 140 OF CGST ACT
Explanation 1.'For the purposes of sub-sections (3), (4) and (6), the expression 'eligible duties' means''

(i) the additional duty of excise leviable under section 3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957;

(ii) the additional duty leviable under sub-section (1) of section 3 of the Customs Tariff Act, 1975;

(iii) the additional duty leviable under sub-section (5) of section 3 of the Customs Tariff Act, 1975;

(iv) the additional duty of excise leviable under section 3 of the Additional Duties of Excise (Textile and Textile Articles) Act, 1978;

(v) the duty of excise specified in the First Schedule to the Central Excise Tariff Act, 1985;

(vi) the duty of excise specified in the Second Schedule to the Central Excise Tariff Act, 1985; and

(vii) the National Calamity Contingent Duty leviable under section 136 of the Finance Act, 2001;
in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the appointed day.

Since, the provision for av-ailment of SAD is contained in CGST Act and not in SGST Act. Therefore the credit will be available in CGST. (reply dt. 05/26/2018)