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GST : Transitional Provisions (Section 140 of CGST Act)

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CENVAT Credit that can be carried forward and allowed as Input Tax Credit [Section 140(1)] This transition provision enables a taxable person to carry forward unutilized input credit under the CENVAT Credit Rules, 2004 . The following table illustrates how a registered person other than one opting for composition scheme can carry forward the CENVAT Credit as Input Tax Credit. Particulars CGST & SGST Credit to be carried forward CENVAT Credit Relevant law CENVAT Credit Rules, 2004 Laws to be subsumed and the relevant credit Central Excise Service Tax Input Tax Credit to be carried forward •        Central Excise paid on Inputs/Capital goods •        Countervailing duty paid on Inputs/Capital goods •     Special Additional Duty paid on Inputs/Capital goods in case of manufacturers •        ...
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How does GST Work? Explained in 10 Points

Destination-Based Tax: GST is a destination-based tax as against the earlier principle of origin-based taxation. The new tax regime follows a multi-stage collection mechanism wherein tax is collected at every stage and the credit of tax paid (input tax credit) at the previous stage is available as a set-off at the next stage of transaction. This helps to eliminate ‘tax on tax’ or the cascading impact of tax. GST benefits the industry through better cash flows and better working capital management. From consumer point of view, GST helps to bring down overall tax. Input Tax Credit: The biggest game changer in GST is input tax credit, where credits of input taxes paid at each stage of production or service delivery can be availed in the succeeding stages of value addition. This means that the end consumer will thus only bear the GST charged by the last point in supply chain, with set-off benefits at all the earlier stages. For example, a manufacturer's total tax on output co...
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FAQs on GST

GST has finally become a reality. For seamless migration to GST, the Central Board of Direct Taxes has time and again come up with frequently asked questions (FAQs) pertaining to various segments. The CBEC, under the purview of the Department of Revenue, clarified that traders dealing only in exempt goods or where their turnover is below Rs. 20 lakh in a financial year are not required to register under GST. Also, traders not opting to pay tax under the composition scheme need to file returns on a monthly basis. Form GSTR-1 is to be filled for outward supplies made by the trader (made in the month for which return is being filed) by the 10th of the next month. Other parts of the return Form GSTR-2 and Form GSTR-3 are auto-populated and only needs to be verified and submitted by the 15th and the 20th of the next month respectively. Here are some other queries addressed by the CBEC What is the basic information that needs to be furnished in Form GSTR-1? The d...
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