Every person registered under any of the existing law & having a Valid PAN shall be issued a Registration certificate on provisional basis, which will be valid until a final registration certificate is issued.
Final Registration certificate shall be issued after all the conditions prescribed in the rules are satisfied.
Certificate issued on provisional basis shall deemed to have not been issued if a cancellation application has been filed by the person stating that he is not liable to be registered as per the provisions of the act.
Carry Forward of CENVAT Credit:
A registered person shall be entitled to take in his electronic credit ledger amount of CENVAT Credit carried forward in the return relating to period ending 30th June 2017( assuming that the appointed day will be 1st July 2017) furnished under the existing law in force.
A registered person shall not be allowed to take the credit in following cases:
Where the amount claimed is not allowed as input tax credit under CGST act or,
Where he has not furnished all the returns required under the existing law for period of 1st January 2017 to 30th June 2017 or,
Where the amount of credit relates to goods manufactured & cleared under exemption notifications as notified by the government.
A registered person other than a person opting to pay tax under composition scheme shall be entitled to take in his electronic credit ledger, balance 50% CENVAT Credit on Capital Goods not availed under CENVAT credit rules 2004.
Provided, such credit should be admissible under CENVAT credit rules & also in GST.
A registered person,
who is not liable to be registered under the existing law, or
who was engaged in the manufacture of exempted goods or provision of exempted services, or
who was providing works contract service & was availing benefit of abatement under notification 26/2012- Service Tax.
a first stage dealer or a second stage dealer, or
a registered importer, or
a depot of a manufacturer
shall be entitled to take in his electronic credit ledger, credit of eligible duties in respect of inputs in stock and inputs contained in semi-finished or finished goods held in stock on the 1st July 2017 subject to the following conditions :
inputs should be used/intended to be used for making taxable supplies in GST
the registered person is eligible for input tax credit on such inputs under GST
the registered person should be in possession of the required documents or invoices evidencing the payment of tax under the existing law
the credit should be taken within 12months of the date of document/invoice.
the supplier of services should not be availing any benefit of abatement in GST
the benefit of reduced prices should be passed to the customer
A registered person who was engaged in the manufacture of taxable & exempt goods under Central Excise or provision of taxable and exempt services under Chapter V of the Finance act, 1994, but which are liable to tax, shall be entitled to take, in his electronic credit ledger the amount of CENVAT credit carried forward in a return furnished under the existing law and the amount of CENVAT credit of eligible duties in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the 1st July 2017, relating to such exempted goods or services
A registered person shall be entitled to take credit of eligible duties in respect of inputs or input services received on/after 1st July 2017, but the duty on these have been paid by the supplier in the existing law subject to the condition that the invoice or document shall be recorded in the books of accounts within 30days from 1st July 2017.
A registered person, who was paying tax under composition, shall be allowed to take credit of eligible duties in respect of inputs in stock on 1st July 2017 subject to the additional condition that he is not paying tax under composition in GST.
Input Tax Credit related to the services received prior to 1st July 2017 by an Input Service D istributor shall be eligible for distribution as credit under GST
A registered person having centralised registration under the existing law has obtained a registration under GST, shall be allowed to take credit of CENVAT credit €carried forward in the return furnished under the existing law by him in respect of period ending 30th June 2017 provided return should be filed within 3months from 1st July 2017 and the credit should be allowed as input tax credit under GST.
Where any CENVAT credit availed for the input services provided under the existing law has been reversed due to non-payment of the consideration within a period of 3 months, such credit can be such credit can be reclaimed subject to the condition that the registered person has made the payment of the consideration for that supply of services within a period of 3 months from 1st July 2017.The Eligible duties are VAT/Excise Duty, CVD, SAD, NCCD, Service Tax, and Additional Excise Duty.
Transitional Provisions relating to Job Work:
When any inputs have been removed as such or after being partially processed a job worker for further processing, testing, repair or any purpose as per the existing law prior to 1st July, 2017 and such inputs are returned to the job worker’s place on/after 1st July, 2017, no tax shall be payable, if such inputs after completion of job work or otherwise, are returned to the premises of the principal manufacturer within 6months from 1st July 2017.
Provided that if such inputs are not received within 6months, then the amount shall be treated as arrears of tax under GST and shall not be allowed as input tax credit under GST.
Similar is the case of Semi-finished goods sent for processing and goods sent for testing. Just one additional condition has been inserted, that is manufacturer may send the goods to another registered person for supply therefrom on payment of tax in India or without payment of tax in case of exports.
The tax shall not be payable only if manufacturer and the job worker declare the details of the inputs or goods held in stock by the job worker on behalf of the manufacturer on 1st July 2017
Miscellaneous Provisions:
When any goods on which duty, if any, had been paid under the existing law at the time of removal not earlier than 1st January 2017 (assuming 1st July 2017 as appointed day), are returned to any place of business on/after 1st July 2017, the registered person shall be eligible for refund of the duty paid where such goods are returned by an unregistered dealer within 31st December 2017 and such goods are identifiable.
Such goods if returned by the registered dealer then it shall be deemed to supply.
Where a contract has been entered into prior 1st July 2017, the price of any goods/services has been revised upwards/downwards on/after 1st July 2017 then the supplier shall issue to the recipient a supplementary invoice /credit note as the case may be within 30days of such price revision and such document shall deemed to have been issued in respect of outward supply.
Provided that the registered person shall be allowed to reduce his liability only if the recipient of the credit note has reduced his input tax credit corresponding to such reduction in the liability.
Where the tax was paid on any supply under the VAT Act and under Service Tax, tax shall be leviable under this act and the taxable shall be entitled to take credit of the tax paid under the existing law to the extent of supplies made after 1st July 2017.
Where any goods have been sent on approval basis, from 1st January to 1st July 2017 are rejected/not approved by the buyer and returned to the seller on/after 1st July 2017, no tax shall be payable if the goods are received till 31st December 2017. Commissioner can extend the period by 2months only.
Where a supplier has made any sale of goods in respect of which TDS was required under any law of a State or Union territory relating to VAT and has also issued an invoice for the same before 1st July 2017, no deduction of tax at source under section 51 shall be made by the deductor under the said section where payment to the said supplier is made on or after 1st July 2017.