Whether ITC Transition provisions on goods purchased within the State on which tax on MRP has been paid, covered under 140(3) or 140(1) ? If covered under 140(1) then how would a credit claim be made, as presently in VAT return only the amount is reflected & it is non-adjustable?
Section 140(1) of CGST Act is applicable for a person who was registered under the existing laws (e.g. under Central Excise,Service tax, Value Added Tax). And therefore, credit on taxes paid on inputs was getting recorded in the returns filed. Section 140(3) of CGST Act is applicable for persons who were not liable for registration under existing laws or who were selling/ providing non-taxable, exempt goods/ services, but their supplies are liable to tax under GST. Please also refer to Section 140 of the SGST Act of your respective State & associated Rules.
