The Synthetic & Rayon Textiles Export Promotion Council

Central Goods and Services Tax (Amendment) Act, 2018-Clarification regarding section 140(1) of the CGST Act, 2017

Circular No.ES/ 347 /2018-19                                                     January 08, 2019

To: Members of the Council

Sub.: Central Goods and Services Tax (Amendment) Act, 2018-Clarification regarding section 140(1) of the CGST Act, 2017

Dear Member,

We would like to inform you that CBIC has issued Circular No. 87/06/2019- GST dated 2nd January, 2019 clarifying about section 140(1) of the CGST Act, 2017 for Central Goods and Services Tax (Amendment) Act, 2018.

Your kind attention is invited to sub-section (a) of section 28 of the CGST (Amendment) Act, 2018 (No. 31 of 2018) which provides that section 140(1) of the CGST Act, 2017 be amended with retrospective effect to allow transition of CENVAT credit under the existing law viz. Central Excise and Service Tax law, only in respect of “eligible duties”. In this regard, doubts have been expressed by the members of Trade as to whether the expression “eligible duties” would include CENVAT credit of Service Tax within its scope or not.

Therefore, in exercise of powers conferred under section 168 of the Central Goods and Services Act (hereinafter referred to as “Act”), for the purposes of uniformity in the implementation of the Act, CBIC has given clarifications in the  Circular No. 87/06/2019- GST.

For more information regarding clarifications, members may kindly refer to the above Circular.

Members may kindly make a note of the above.

Thanking you,

Yours faithfully,

S.BALARAJU
EXECUTIVE DIRECTOR