Tax credit on the closing stock as on the appointed day

 

Tax credit on the closing stock as on the appointed day

> The dealer would have claimed input tax credit at the time of purchase of input, therefore, no fresh tax credit on such closing stock closing stock would be allowed to the taxpayer.

> However, where the taxpayer was not registered under the earlier law as he was not liable to get registration or where he was paying tax under the composition scheme under the earlier law, he may claim tax credit of the stock held on the appointed day, provided -

(a)  Amount of credit pertains to the period up to the appointed day and could not be claimed for the reason that he was not liable for registration, or he was paying tax under the composition scheme.  

(b) Taxes should pertain to-

> inputs held in stock; and

> input contained in semi-finished or finished goods held in stock,

on the day preceding the date of such appointed day.

(c) Credit must otherwise be admissible under the earlier law as well as the GST law.

(d) He has invoice/other evidence in his possession for purchase not earlier than 12 months from the appointed day.