Transitional Provisions under GST Part7 –Treatment of Tax Amount

There could be a situation where there is a dispute between the department and registered taxable person with regard to the amount Cenvat credit or Input Tax credit. In such a scenario, the question arises how such dispute, appeal or review will be settled under GST?

The above situation is addressed by section 182 of Model GST Law

Treatment of Cenvat Credit Claim Arising Out of Appeal, Revision or Review under CGST and SGST

In such a scenario, every such claim pertaining to earlier law whether initiated before or after GST becoming effective will be disposed in accordance with the provisions of earlier law.

Pointed to be noted: No refund claim shall be allowed of any amount of Cenvat credit or Input Tax Credit where the balance of the said amount as on the appointed day has been carried forward under this Act

Treatment of Cenvat Credit Recovery Arising Out of Appeal, Revision or Review under CGST and SGST

In such a scenario, every such claim pertaining to earlier law whether initiated before or after GST becoming effective will be disposed in accordance with the provisions of earlier law.

Point to be Noted: The amount so recovered, will be treated as an arrear of tax and will be not allowed as Input Tax Credit Under GST

Point of Distinction between CGST AND SGST

In CGST, the cenvat will be paid in cash, whereas in SGST input tax credit will be paid in accordance with State VAT Law