CBEC releases Transition Rules approved by GST Council [Read Transition Rules]

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The Central Board of Excise and Customs (CBEC), the apex body of indirect taxation in India, recently unveiled the Transition Rules as finalized by the GST Council in its meeting held on New Delhi last week. Further, CTD document proposing to amend CENVAT Credit Rules, 2004 has also been uploaded

The Goods and Services Tax (GST) transition rules have been amended with an object to minimize losses arising out of the mismatch between tax payout and tax refund, for claiming tax credit on old stock. The deemed transition credit limit has been raised from the proposed 40% to 60% of the Central GST liability (CGST) for products that attract a tax rate of 18% and above.

As per the rules, persons entitled to take transition credit will have to submit a declaration in prescribed format within 90 days (upto 30th Sept) specifying the amount of credit he wants to take on stocks lying with him on 30th June. However, the Commissioner can extend this time limit to another 90 days. In case of capital goods, whose part credit was availed in current period and part credit is to be availed under GST, the dealer has to submit a separate declaration.

Read the full text of the Transition Rules below.

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