FAQs on Transitional Provisions under Goods and Service Tax

Q 1. Will the CENVAT/ITC carried forward in the last return prior to GST under earlier law be available as ITC under GST?

Ans. Yes, the registered taxable person shall be entitled to such credit and it will get credited to his electronic credit ledger – section 143.

Q 3. VAT credit was not available on items ‘X’ & ‘Y’ as capital goods in the earlier law. Since they are covered in GST, can the registered taxable person claim it now?

Ans. He shall be entitled to credit only when ITC on such goods were admissible under the earlier law and is also admissible in GST. Since on the two items credit was not available under the earlier law, the said person cannot claim it in GST – proviso to section 144(1).

Nitika Bansal

I will regularly provide update on direct tax and indirect tax