Taxes Eligible for ITC on Opening Stock of 1st July

Last updated on August 8th, 2017 at 12:58 pm

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Pugal T & Yarab A


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  • I small garments business doing only state purchases under vat regime migrated to GST . our total annual turnover is below 20 lakhs only. As government mentioned below 20 lakhs turnover businesses having option to register in GST is not Compulsory. So i want cancel my GSTIN. How to cancel my GSTIN no, and is any tax is levied on closing stock.

    • The option to cancel the registration will be available in GST portal. Any ITC available in e-credit ledger post adjustment will lapse.

  • We are Service Provider engaged in PHE works (Plumbing Works). We purchase material and install it as per the requirement of of our work order.Previously we were covered under Works contract Tax and Service tax. Now in GST, please give details about following,

    1 How to claim input tax on our stock as on 1.7.2017?

    2. We purchased all material (eg Pipes, pipe fittings, valves, sanitaryware, faucets) from Distributors and Manufacturer. Shall we be able to claim ITC of Excise Duty for the material purchased from Distributor? If yes, how to calculate the ITC available?

    3. We were having WCT/VAT registration in all the states where ever we were awarded the works (3 States). So to migrate we had to take GST registration in all the states. But ours is Delhi based company. We file our ITR in Delhi, Service Tax Return in Delhi and VAT/WCT return in respective state. In GST regime, can we work any where in India with our Delhi GSTIN?

    4. How raise Invoices to our clients?

    5. We purchase pipes (measured In Meter) and fittings(measured in Numbers) and install them along with necessary supporting method (with MS angle etc measured in Kg). But we raise our invoice for pipes(measured in Metre). How to adjust stock against invoiced item?

    6. Our bank is in Delhi and all payments coming from any state is deposited in it. How to show payments to our suppliers in other states?

    Please advise.

  • 1.When I submit transition 1 form for opening ITC service tax .

    In Gst portal not avail above kindly suggest.



  • i have imported stock of raw material lying in outside warehouse. i was registered under cex. undercex rules credit could be only taken when goods were bought into factory. so i have not taken credit till 30th june. can i take credit of these raw materials when they bought to factory. i have invoice bill of entry and all duty paid docs. please advise i am a customer of tally.

  • Sir we are doing timber business. Most of the timber import from other countries only. Local and interstate purchase also was there. Every return we have adjusted input tax and balance we paid. Import time we have paid custom duty. Now my question is can we eligible for ITC or not.

  • whether municipality is required for taking registration of g s t? what rate is applicable for controractar supplier who are engaged in municipality for suppling material and doing contracting

    • All the Central and State government departments or establishment are required to register. For details regarding rate, you can refer the rate section in CBEC site.

  • Balance on Input Tax Credit as on 30.06.2017 as submitted in VAT Return for the quarter ending June 2017 and Excise Credit on Stock as on 30.06.2017 will be carried forward to GST through Tran-1 & 2, but will be adjusted with non-furnishing C & F Form since 01.04.2015 to 30.06.2017 within 30th September 2017. Please confirm.

    • Yes, for non-furnishing of declaration forms, adjustment needs to be done for differential amount i.e. rate charged in lieu of Statutory Forms, and actual VAT Rate applicable on the product/commodity. The differential rate payable on sales on which the forms are pending, should be reduced from balance of ITC as per last VAT Return and remaining balance will be your final eligible ITC to be carried forwarded as SGST Credit. For more details, please read How to Carry Forward Closing Balance of ITC from Earlier Regime to GST?

  • If we are not claiming any input credit on our closing stock , as it was payable by us, & subsequently paid, now there a is no input credit to be claim in this scenario also I have to show my stock details in GST TRAN-1 , Table No.7?

  • If my party send goods from Gujrat to me in maharashtra, our policy is that on security gate only we took sample of material sent by supplier , tested in our own lab ,if it is not according to our specifications it returns from our gate only, which document will require to sent that material back to Gujrat from According to GST Law?

  • Is the list of all stock Item is also required in GST TRAN-1 Table No.7 While claiming input on opening stock?

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