In this blog, we look at a query on centralised registration and carry forward of CENVAT Credit.
The company has obtained a Centralized Registration under the Service Tax law. The ST-3 return for the period ended 31st March 2017 has been filed under this registration. The company will also file the short period return upto the day immediately preceding the appointed day under this registration. However, since the company has development centres in Bangalore, Chennai, Hyderabad, Pune, Trivandrum, Kolkatta, Gurgaon, Noida, and Delhi, the company will be obtaining GST registration in the States of Tamil Nadu, Telangana, Maharashtra, Kerala, West Bengal, Haryana, Uttar Pradesh and Delhi. How will the CENVAT Credit appearing in the short-period return be apportioned and carried forward under various State-wise registrations under GST?
The whole of the CENVAT credit carried forward in the short period return filed in Bangalore – centralised registration will be allowed to be carried forward as CGST in the GST registration in the State of Karnataka.
While the law provides that such credit can be transferred to any other registered persons under GST, having the same PAN as that of the Bangalore registration, there is no prescribed mechanism for apportionment to various States, of CENVAT credits appearing in the short period return filed under the current centralized service tax registration.
Author: P V Srinivasan
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