Unregistered Dealers can Claim Cenvat Credit for Goods Purchased before GST Rollout on the basis of CTD [Read Notification]

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The Central Government notified that the dealers who are not registered under the Central Excise Act but is registered with the Central Goods and Service Tax Act (CGST) can claim Cenvat Credit for goods purchased before 1st July 2017 on the basis of Credit Transfer Document (CTD).

However, this is subject to conditions prescribed in the notification. In order claim tax credit, the value of such goods must be more than rupees twenty-five thousand per piece and the goods bear the brand name of the manufacturer or the principal manufacturer and are identifiable by a distinct number such as chassis or engine number of a car. The dealer is bound to maintain records of clearance and duty payment relatable to each piece of such goods and must submit the same to the Officer on demand.

 the CTD shall be serially numbered and shall contain the Central Excise registration number, address of the concerned Central Excise Division, name, address and GSTIN number of the person to whom it is issued, description, classification, invoice number with date of removal, mode of transport and vehicle registration number, rate of duty, quantity, value and duty of excise specified in the First Schedule to the erstwhile Central Excise Tariff Act, 1985 paid thereon.

The dealer is liable to fulfill such other conditions specified in the Notification. The Notification is applicable from 1st July 2017.

Read the full text of the Notification below.

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