Suggestions on GST Acts (July 2017) by Institute of Chartered Accountants of India
49. Carry forward of credit – Sec 140 (3)(iv)
Section 140(3)(iv) allows a specified registered person, to take, in his electronic credit ledger, credit of eligible duties in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the appointed day based on such invoices or other prescribed documents which were issued not earlier than 12 months immediately preceding the appointed day.
Issue
In case of certain industries such as plyboard dealers, dealers dealing in non-consumable seasonal products such as Air conditioners, coolers etc as per the business trends they generally maintain large stocks of semi-finished and finished goods which may contain inputs for which the invoices or duty paying documents may pertain to a period earlier then 12 months
Suggestions:
It is suggested that for specific industries a relaxation be provided in respect of clause (iv) of Section 140(3) thereby extending the credit to invoices pertaining to a period which is earlier than 12 months based on the nature of the industry.
Read ICAI Suggestions on GST Act to Govt : July 2017
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