Question ID : 38026

VAT CREDIT WRONGLY CARRY FORWARD INTO TRANSITIONAL RETURN (TRAN 1)

We have carried forward Excess tax into the TRAN-1and taken as transitional SGST credit on 27.12.2017. Such excess tax carried forward amount includes WCT/STDS (Works Contract tax/SALES TAX DEDUCTED AT SOURCE) deducted by our Customer/client which was actually adjusted with the payment of output VAT. But this amount was inadmissible as per transitional provison as per sec.140 so we have never utilised the same credit for the payment of the output GST and we have reversed the same through GSTR 3B in the month of July'2018. After that after July'2018 we have received DRC 07 summary of order that we have to make payment of interest @24% on such availment of inadmissible transitional credit on the full amount of inadmissible credit. Kindly give your light on the above action whether interest will be applicable on the full amount amount of inadmiisble credit @24%. If interets will not be charged how can we convince out commercial tax officer or what will be the ground of appeal for rectification of order.

posted by Chandra Kant Prasad on Mar 8 2019 12:00AM