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Credit of excise duty to traders under GST on opening stock

Credit of excise duty to traders under GST on opening stock

This is a long awaited provision. Traders have excise duty component in their stock. But they dont have any proof of that excise duty.Credit of excise duty to traders under GST on opening stock is available subject to following:
1. In terms of proviso to section 140(3) of GST bill as passed by Lower House, a trader is allowed to take credit of excise duty even if documents evidencing payment of duty are not available.
 
2. Rule 1 of transitional rules making clear guidelines for availment of credit of excise duty after fulfillment of certain conditions.
 
3. Every registered person entitled under section 140 for taking itc shall file a statement within 60 days from the appointed day in form GST-TRAN-1 along with separate details of stock.
 
4. Credit shall be allowed *at the rate of 40%* of the central tax (CGST) applicable on supply of such goods after the appointed day and shall be credited after the payment of central tax.
 
5. Credit is available only if the goods attract excise duty and documents of procurements of such goods available with the registered person.
 
6. The scheme shall be open for a maximum period of 6 months from the appointed day and at the end of each month a statement need to be filed in form GST TRAN…indicating the details of supply effected during the said tax period.

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