{"id":25935,"date":"2021-02-13T15:17:20","date_gmt":"2021-02-13T09:47:20","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=25935"},"modified":"2021-08-28T15:59:23","modified_gmt":"2021-08-28T10:29:23","slug":"general-idea-on-gst-input-tax-credit-transition-provision-on-stock-in-india","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/general-idea-on-gst-input-tax-credit-transition-provision-on-stock-in-india\/","title":{"rendered":"General Idea on GST Input Tax Credit Transition Provision on Stock in India"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Within GST input tax credit, duties and taxes are available to taxpayers\non the basis of stock and input&nbsp;with respect to the semi-finished and\nfinished goods which will be available to the taxpayer on the fulfilment of\ncertain criteria elaborated in this article.<\/p>\n\n\n\n<p>The following categories of registered taxable person eligible to take <a href=\"https:\/\/corpbiz.io\/gst-registration\"><strong>Goods and services tax<\/strong><\/a>  input tax credit subject to certain conditions:-<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" width=\"901\" height=\"308\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/02\/The-following-categories-of-registered-taxable-person-eligible-to-take-GST-input-tax-credit-subject-to-certain-conditions.png\" alt=\"The following categories of registered taxable person eligible to take GST input tax credit subject to certain conditions\" class=\"wp-image-25978\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/02\/The-following-categories-of-registered-taxable-person-eligible-to-take-GST-input-tax-credit-subject-to-certain-conditions.png 901w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/02\/The-following-categories-of-registered-taxable-person-eligible-to-take-GST-input-tax-credit-subject-to-certain-conditions-300x103.png 300w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/02\/The-following-categories-of-registered-taxable-person-eligible-to-take-GST-input-tax-credit-subject-to-certain-conditions-768x263.png 768w\" sizes=\"(max-width: 901px) 100vw, 901px\" \/><\/figure><\/div>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/general-idea-on-gst-input-tax-credit-transition-provision-on-stock-in-india\/#When_Individual_is_not_Liable_to_Register_under_Current_Law_to_Avail_GST_Input_Tax_Credit\" >When Individual is not Liable to Register under Current Law to Avail GST Input Tax Credit?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/general-idea-on-gst-input-tax-credit-transition-provision-on-stock-in-india\/#Pre-Requisites_for_First_Stage_Dealer_or_Second_Stage_Dealer_and_Registered_Importer\" >Pre-Requisites for First Stage Dealer or Second Stage Dealer, and Registered Importer<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/general-idea-on-gst-input-tax-credit-transition-provision-on-stock-in-india\/#Conditions_Needed_to_be_Completed_to_Avail_GST_Input_Tax_Credit\" >Conditions Needed\nto be Completed to Avail GST Input Tax Credit<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/general-idea-on-gst-input-tax-credit-transition-provision-on-stock-in-india\/#Duties_and_Taxes_Eligible_to_claim_GST_Input_Tax_Credit\" >Duties and\nTaxes Eligible to claim GST Input Tax Credit<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/general-idea-on-gst-input-tax-credit-transition-provision-on-stock-in-india\/#Transition_Provisions_under_Regime_of_GST\" >Transition Provisions under Regime of GST<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/general-idea-on-gst-input-tax-credit-transition-provision-on-stock-in-india\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"When_Individual_is_not_Liable_to_Register_under_Current_Law_to_Avail_GST_Input_Tax_Credit\"><\/span>When Individual is not Liable to Register under Current Law to Avail GST Input Tax Credit?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>According to Central Excise Law, the manufacturer whose first gross\nturnover does not exceed Rs 1.5 crore is not required to register or discharge\nthe obligation to pay taxes. As such, under the VAT Act, a taxpayer is not\nrequired to be registered in case the turnover does not exceed the authorize\nlimit in a FY; which differs from state to state. <\/p>\n\n\n\n<p>Under regime of GST, a taxpayer is responsible to register in case of total turnover in a financial year which is more than Rs 20 lakh or Rs 10 lakh for special category states. Therefore, those who did not need to be registered here would not be liable for the same transition to GST, which would discharge duties and taxes under GST.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/place-of-supply-of-imports-of-goods-or-services-under-the-regime-of-gst\/\">Understanding on Place of Supply of Imports of Goods or Services under the Regime of GST<\/a><\/mark><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Dealing in Exempted Goods or Services<\/h3>\n\n\n\n<p>Suppose a person is engaged in providing services which are exempted due\nto notice of exemption or is not liable to pay duties on engaged supply goods\nthat are not taxed. Although, under GST, a person earlier was not liable to pay\ntaxes will be held liable to pay the same.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Pre-Requisites_for_First_Stage_Dealer_or_Second_Stage_Dealer_and_Registered_Importer\"><\/span>Pre-Requisites for First Stage Dealer or Second Stage Dealer, and Registered Importer<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Under the Central Excise Law, the first and second stage dealers are required to get enrolled themselves as a dealer and are not eligible to obtain credit of excise duty which they paid.<\/p>\n\n\n\n<p>The involved excise duty is allowed to the registered manufacturer as a credit on the goods payable. Likewise, the importer of goods needs to be registered and will discharge the import duties. The above said categories of registered taxable person are entitled to take credit of inputs.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conditions_Needed_to_be_Completed_to_Avail_GST_Input_Tax_Credit\"><\/span>Conditions Needed\nto be Completed to Avail GST Input Tax Credit<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>According to the prevalent and existing tax regime, input tax credit is not permitted which leads to rising prices of goods or services. Under GST, credit of such input taxes or duties will be permitted, which will reduce the prices of such goods or services. This benefit should be given to the recipients of such goods or services through lower prices.<\/li><li>Under GST, the taxable person must be eligible for such input tax credit.<\/li><li>Taxable <strong><em>person<\/em><\/strong><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Person\"><strong><em>[1]<\/em><\/strong><\/a><\/sup> must possess the proof of invoices or documents which clearly showing about the payments of duty made under the existing current law.<\/li><li>The date of such proofs (invoices or documents) should be issued within the stipulated period of 12 months from the transition date i.e. appointed date.<\/li><li>The supplier of goods or services is not eligible for any repeal under GST. In the case where the registered taxable person is not in possession of the invoice and \/ or other documents, which are paying the fee under the existing law, the credit of input tax shall be subject to such limitations, conditions and protections, which can be determined by the law.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Duties_and_Taxes_Eligible_to_claim_GST_Input_Tax_Credit\"><\/span>Duties and\nTaxes Eligible to claim GST Input Tax Credit<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>Duties and taxes eligible to claim for credit under regime of CGST are as follows:<\/em><\/strong><\/p>\n\n\n\n<ul><li>Excise Duty<\/li><li>Additional Excise Duty<\/li><li>National Calamity Contingent Duty<\/li><li>Additional Custom Duty<\/li><\/ul>\n\n\n\n<p><strong><em>Duties and taxes eligible for claim for credit under regime of SGST are as follows:<\/em><\/strong><\/p>\n\n\n\n<ul><li>Service Tax<\/li><li>Value Added Tax<\/li><li>Entry Tax<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Transition_Provisions_under_Regime_of_GST\"><\/span>Transition Provisions under Regime of GST<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>GST is a multi-step value-added tax on the consumption of goods or\nservices or both. Detailed provisions have been made to advance ITC earned\nunder existing law. Such credit should be allowed under the GST law. However,\nopting for taxable person composition plan will not be eligible to be carried\nforward existing ITC.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Transition\nProvisions can be Divided under Three Heads<\/h3>\n\n\n\n<ul><li>Concluding Input tax credit related<\/li><li>Existing processes such as continuing to work<\/li><li>All claims (pending as well as future) relate to\ncurrent laws filed before or after the current day<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>We all know that in GST for input tax and duties are available to every\ntaxpayer on the basis of the stock and input on being categorized under the\nsemi-furnished and furnished goods. <\/p>\n\n\n\n<p>As per the new tax regime, every taxpayer has to fullfill the categorized conditions of the competent authority. &nbsp;Kindly associate with the <a href=\"https:\/\/corpbiz.io\/\"><strong>Corpbiz<\/strong><\/a> expert to know more about the GST input tax credit transition provision on stock<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/effect-of-vat-return-after-gst-implementation\/\">An Outlook on Effect of VAT Return after GST Implementation<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Within GST input tax credit, duties and taxes are available to taxpayers on the basis of stock and input&nbsp;with respect to the semi-finished and finished goods which will be available to the taxpayer on the fulfilment of certain criteria elaborated in this article. The following categories of registered taxable person eligible to take Goods and [&hellip;]<\/p>\n","protected":false},"author":32,"featured_media":25976,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[16],"tags":[1528],"acf":{"service_id":"96"},"authorName":"Komal Singh","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/12\/processed.jpeg","authorDescription":"Komal Singh is a Legal scholar, having diverse experience in scripting research papers, articles &amp; dissertations, which serves her main interest &amp; competent in drafting legal documents. She has polished her skills in dealing with the matter related to consumer affairs and now building intelligible Legal Content for Corpbiz.","postViews":3194,"readingTime":3,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/25935"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/32"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=25935"}],"version-history":[{"count":14,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/25935\/revisions"}],"predecessor-version":[{"id":35040,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/25935\/revisions\/35040"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/25976"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=25935"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=25935"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=25935"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}