Traders and retailers can file declarations within 90 days claiming tax credit for transition stock after the GST rolls out from July 1.
The draft transition rules for the Goods and Services Tax (GST) regime had pegged the time at 60 days.
The transition rules approved by the GST Council provides that "every registered person entitled to take credit of input tax shall, within 90 days of the appointed day, submit a declaration electronically Specifying separately, the amount of input tax credit to which he is entitled...".
It also gives commissioners the power to extend this period by further 90 days on recommendation of the GST Council.The GST Council, chaired by Union Finance Minister Arun Jaitley and comprising state counterparts, also decided to amend the transition rules allowing traders and retailers to make claim of 60 per cent against the CGST or SGST dues where the tax rate exceeds 18 per cent.
In cases where the GST rate is below 18 per cent, only 40 per cent deemed credit will be available against CGST and SGST dues. Further, the government will refund 100 per cent excise duty for goods costing above Rs 25,000 and bearing a brand name of the manufacturer and are serially numbered like TV, fridge or car chasis.
To avail this a manufacturer can issue a Credit Transfer Document (CTD) as evidence for excise payment on goods cleared before the introduction of GST to the dealer.
The dealer availing credit using CTD would also have to maintain copies of all invoices relating to buying and selling from the manufacturer to the dealer, through intermediate dealers.
CTD shall be issued within 30 days of July 1, 2017, and details of the same shall be mentioned in specified forms by manufacturer and such dealer/distributor availing the credit.
"This provision comes as a sigh of relief for entire dealers/distributors network of motor vehicle and other conveyances, as such dealers/distributors would get the entire credit of excise paid by original manufacturer," Nangia & Co Directors (Indirect Tax) Rajat Mohan said.