A seemingly missing provision from the fine print in the amendments to the central goods and services tax (GST) law approved by parliament in the monsoon session has led to a furor in the industry.
Tax practitioners say the latest changes deny carry forward of credit for cesses, as intended, but credit for service tax has also been done away with. A government official, however, played down the concerns saying the interpretation being drawn is erroneous. He told ET that the government will issue a clarification if it is so needed as the intent of the law is very clear.
The issue, experts say, stems from the retrospective amendment to Section 140 (1) of the CGST Act 2017 that empowers assessees to transition the closing balance of cenvat (central value-added tax) credit in the erstwhile indirect tax regime to the GST regime. While the intention was to ensure that the credit of various cesses was not transitioned, the amended section replaces “amount of cenvat credit” by “amount of eligible duties.”Read Original Post >>