Allow Carry forward of Transitional Credit under GST if Invoice if older than 12 months : ICAI Suggestions

By | August 15, 2017
(Last Updated On: August 15, 2017)

Suggestions on GST Acts (July 2017) by Institute of Chartered Accountants of India

49. Carry forward of credit – Sec 140 (3)(iv)

Section 140(3)(iv) allows a specified registered person, to take, in his electronic credit ledger, 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 appointed day based on such invoices or other prescribed documents which were issued not earlier than 12 months immediately preceding the appointed day.

Issue

In case of certain industries such as plyboard dealers, dealers dealing in non-consumable seasonal products such as Air conditioners, coolers etc as per the business trends they generally maintain large stocks of semi-finished and finished goods which may contain inputs for which the invoices or duty paying documents may pertain to a period earlier then 12 months

Suggestions:

It is suggested that for specific industries a relaxation be provided in respect of clause (iv) of Section 140(3) thereby extending the credit to invoices pertaining to a period which is earlier than 12 months based on the nature of the industry.

Read ICAI Suggestions on GST Act to Govt : July 2017

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About CA Satbir Singh

Chartered Accountant having 12+ years of Experience in Taxation , Finance and GST related matters and can be reached at Email : Taxheal@gmail.com

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