The Central Government amended the Cenvat Credit Rules to enable the service recipients to carry forward the unavailed credit of Service Tax under the GST regime which is all set to be implemented from July 1, 2017. A Notification regarding the amendment has been released by the Government today.
As per the Cenvat Credit Rules, 2004, credit of Service Tax paid in a financial year, on the onetime charges payable in full upfront or in installments, for the service of assignment of the right to use any natural resource by the Government, local authority or any other person, shall be spread evenly over a period of three years.
The Rules have been amended by the Government so as to provide that Cenvat credit in respect of such services which remains unavailed on the day immediately preceding the ‘appointed day’ may be availed of in full on that very day. As per the notification, “appointed day” means the day when Central GST comes into effect.
Read the full text of the Notification below.