The document outlines the transitional provisions under GST for cenvat and input tax credit, detailing scenarios for registered individuals transitioning from the previous tax framework to GST. It covers eligibility criteria for taking credit on unavailed cenvat, input held in stock, and conditions for manufacturers of exempted and non-exempted goods. Additionally, it discusses regulations for capital goods and implications of switching from a normal scheme to a composition scheme under GST.

1. Transition Provision Under GST
CA Mayur Zanwar

2. EXCISE
SERVICE TAX
VAT
GST

3. TRANSITIONAL PROVISION OF CENVAT CREDIT STANDING IN RETURN
Input Tax
Credit
CENVAT credit
VAT credit
It includes
Central excise
Service Tax
Education cess
NCCD
 krishikalyan cess (only to service
provider)
Additional duty u/s 3(1) of Custom
Tariff Act
It includes
ITC under VAT law of state
 CVD 3(5) under CTA
Can be availed against
payment of CGST i.e.as a
CGST Credit
Can be availed against
payment of SGST i.e.as a
SGST Credit
Person Is
Register Under
Existing Law
Person is
register under
GST and not
opting for
composition
scheme
CENVAT or
VAT is carried
forward in
return as per
Earlier Law
Said Credit can
be carried
forward as ITC
under GST in
Following
manner
Situation I- Already Register

4. TRANSITIONAL PROVISION OF UN-AVAILED CENVAT CREDIT ON CAPITAL GOODS
Person Is Register Under Existing Law
(Excise or Service Tax)
Person is register under GST and not
opting for composition scheme
There is un-availed CENVAT not carried
forward in return as per Earlier Law
Said Credit can be taken as ITC under
GST as CGST

5. TRANSITIONAL PROVISION OF CREDIT OF INPUT HELD IN STOCK
Person is
-Not liable to Register Under Existing Law or
-Manufacture exempted goods or
-Providing exempted service or
-Paying tax under composition scheme in earlier law or
-Register importer
Person is register under GST
There is stock in hand on
appointed day on which tax
has been paid under earlier
law
Tax paid on such stock can
be taken as ITC under GST
as follow
Excise Service tax- as CGST
VAT- as SGST
Situation II- Not Register under earlier Law

6. Condition for taking such credit
Such inputs are used or intended to be used for making
taxable supplies under GST
He has passes on the benefit of such credit by way of
reduced prices to the recipient
He is eligible for input tax credit on such inputs under GST
He is in possession of invoice not older than 12 month
evidencing payment of duty under the earlier law in respect
of such inputs
the supplier of services is not eligible for any abatement
under GST
In case of dealer/traders
-who is not in possession
of an invoice evidencing
payment of excise
-he shall be allowed to
take credit at the rate and
in the manner prescribed.

7. Engage in manufacturing of taxable as well as Exempted goods
Or
Engage in provision of taxable as well as exempted services
Now in GST whole supply become taxable
Entitle to take ITC carried
forward in return file
under earlier law
Entitle to take credit of
duties paid on input held
in stock related to
exempted goods or
services
SITUATION III- ALREADY REGISTER MANUFACTURE OF EXEMPTED AS WELL
NON-EXEMPTED GOODS

8. PURCHASE RETURN OF EXEMPTED GOODS
Remove removed exempted goods under earlier law
Removal is within 6 months before appointed date
Return by register person within 6
months from the date of applicability
of GST
OR
Return by unregister person
No taxes will be payable by person
returning goods
Return by register taxable
person after 6 months from the
date of applicability of GST
GST will be payable by person
returning goods i.e. treated as
fresh supply under GST

9. PURCHASE RETURN OF DUTY PAID GOODS
Removed duty paid goods under earlier law
Removal is within 6 months before appointed date
Goods are return from person
who is not registered under GST
Return within 6 months from the
date of applicability of GST
Refund of tax paid under earlier
law may be claimed on receipt of
goods.
Return by person register
under GST
GST will be payable by person
returning goods i.e. treated as
fresh supply under GST
Return after 6 months from the
date of applicability of GST
No Refund allowed

10. SALE OF CAPITAL GOODS ON WHICH ITC IS TAKEN
Capital Goods means goods the value of which is capitalized in the books of accounts which
are used or intended to be used in the course or furtherance of business.
The registered taxable person on sale of capital goods shall:
- pay an amount equal to input tax credit taken on such capital goods
- reduced by percentage points as prescribed or
-tax on the transaction value of such capital goods, whichever is higher.
Particulars Amount
ITC taken on such capital goods xxxx
Less: % prescribed by the Govt xxxx
Total (A) XXXX
Tax on the transaction value of such capital goods (B) XXXX
The taxable person shall pay an amount higher of A or B.

11. Taxable person registered under normal scheme in existing law
There are unutilized portion of input tax credit under old law
Now Opted for Composition Scheme under GST
Liable to pay credit availed for input held in stock
Reverse credit not availed.
SITUATION IV- SHIFT OVER FROM NORMAL SCHEME TO
COMPOSITION SCHEME UNDER GST

12. CA Nikhil Malaiya
Cell: 9545727818
E-mail: canikhilmalaiya@gmail.com
CA Mayur Zanwar
Cell: 9422855595
E-mail: cazanwar@gmail.com