Suggestions on GST Implementation Issues 28.09.2017 by ICAI Indirect Tax Committee

(v) Transitional Credit is not available to Manufacturer / Service provider :

(a) Transitional credit not being available to some manufacturers/ service providers would be
discriminatory and impact the margins. Needs to be provided to all if the goods/ services earlier
were not liable to tax.

E.g. : Printing services were brought under the tax net w.e.f 01.07.2017 @ 18% / 12%, however
no transitional credit is available to such service provider under proviso to section 140(3) of CGST
Act, 2017 in case taxable person has procured the goods i.e paper of printing from the trader on
which VAT /CST was charged as well Entry Tax was imposed.

Suggestion :
a) Adhoc transitional credit be provided in the line of proviso to section 140(3) of CGST Act,
2017.
b) Capital goods credit not available for exempted units/ service providers as well as traders who
may have invested in pre GST period needs to be allowed with depreciations for number of years
to build in fairness and equal treatment under GST.

Suggestion :
Credit be allowed in such cases.

Read Suggestions on GST Implementation Issues 28.09.2017 by ICAI Indirect Tax Committee

Related Topic on GST