note: this presentation is clarificatory in nature and not meant … · higher education cess only...
TRANSCRIPT
1
GST Policy Planning Unit Directorate of Commercial Taxes
NOTE: This presentation is clarificatory in nature and not meant for interpretation of provisions of relevant act and rules.
TRANSITIONAL ISSUES WHILE SWITCHING
OVER TO GST:-
2
Transitional Arrangement for Input Tax Credit.. Sec.140
Transitional Provisions relating to job work.. Sec.141
Miscellaneous Transitional Provisions.. Sec.142
GST Policy Planning Unit Directorate of Commercial Taxes
C/F IN THE LAST RETURN
UNAVAILED CREDIT ON CAPITAL GOODS
NOT LIABLE TO BE REGISTERED UNDER THE EXISTING LAW/ENGAGED IN MANUFACTURE
OF EXEMPTED GOODS/PROVISION OF EXEMPTED SERVICES etc.
ENJOYED COMPOSITION PRE GST, MOVES TO GST UNDER NORMAL SCHEME
3
ENGAGED IN MANUFACTURE OF TAXABLE AS WELL AS EXEMPTED GOODS/PROVISION
OF TAXABLE AS WELL AS EXEMPTED SERVICES
AVAILABILITY OF CREDIT OF DUTY/TAX PAID UNDER THE EXISTING LAW IN GST
DISTRIBUTION OF INPUT TAX CREDIT BY AN ISD
AVAILABILITY OF CREDIT TO A PERSON HAVING CENTRALIZED REGISTRATION IN PRE-
GST ERA
RECLAIM OF REVERSED CREDIT DUE TO NON-PAYMENT OF CONSIDERATION IN THE PRE -
GST ERA
GST Policy Planning Unit Directorate of Commercial Taxes
CENVAT/VATCREDIT CARRIED FORWARD in the last return
Availability of credit in GST is subject to the following Conditions :
The amount has to be admissible as ITC under the GST Law
c/f VAT credit equivalent to tax relating to unsubstantiated claim u/s 3/5(3)/6/6(2) of the CST Act 1956 will be ineligible for credit to the electronic credit ledger However, refund of such ineligible amount would be available under the earlier law after the aforesaid claims are substantiated
4
To declare entitlement of credit c/f CENVAT/VAT credit within 90 days of the appointed day electronically in Form GST TRAN 1
Cannot be a return defaulter for last six months of the existing law
Credit should not relate to goods manufactured/cleared under exemption notifications
GST Policy Planning Unit Directorate of Commercial Taxes
CENVAT/VATCREDIT CARRIED FORWARD in the last return……Illustration…
5 GST Policy Planning Unit
Directorate of Commercial Taxes
Description of Credit c/f as on 30/06/2017
Amount c/f (in Rs.)
Central Excise 5, 00, 000/-
Service Tax 2, 00, 000/-
Education Cess 10, 000/-
Secondary & Higher Education Cess
5, 000/-
Krishi Kalyan Cess 5, 000/-
Additional Duty u/s 3(1) of CTA(CVD)
50,000/-
Additional Duty u/s 3(5) of CTA(SAD)
40, 000/-
VAT 1, 00, 000/-
TOTAL: 9, 10, 000/-
What would be the amount of credit available under CGST?
What would be the amount of credit available under SGST?
Will the credit of CGST differ depending on the fact whether I am a manufacturer or a service provider?
CENVAT/VATCREDIT CARRIED FORWARD in the last return……Illustration…
6 GST Policy Planning Unit
Directorate of Commercial Taxes
Secondary & Higher Education Cess was withdrawn w.e.f 01/03/2015 and credit of such could be utilized with the output liability of Secondary & Higher Education Cess only
Swach Bharat Cess was introduced w.e.f 15/11/2015 in respect of all taxable service except fully exempted services and was only output liability of which no credit was available
Krishi Kalyan Cess was introduced w.e.f 01/06/2016 for absolute service providers only and could be utilized with the output liability of Krishi Kalyan Cess Only
CENVAT/VATCREDIT CARRIED FORWARD in the last return……Illustration…
7 GST Policy Planning Unit
Directorate of Commercial Taxes
Amount of CGST Credit available
Amount c/f (in Rs.)
Central Excise 5, 00, 000/-
Service Tax 2, 00, 000/-
(CVD) 50,000/-
(SAD) 40, 000/-
TOTAL: 7, 90, 000/-
For a manufacturer:- For a service provider:-
Amount of CGST Credit available
Amount c/f (in Rs.)
Central Excise 5, 00, 000/-
Service Tax 2, 00, 000/-
Krishi Kalyan Cess 5, 000/-
(CVD) 50,000/-
TOTAL: 7, 55, 000/-
Amount of SGST Credit available
Amount c/f (in Rs.)
VAT 1, 00, 000/-
•SBC not allowed to be c/f •KKC not allowed to be c/f for manf. •SAD not allowed for SPs
UNAVAILED CENVAT/VAT CREDIT ON CAPITAL GOODS
NOT CARRIED FORWARD
Availability of credit in GST is subject to the following Conditions :
The amount has to be admissible as ITC under the GST Law
UNAVAILED CENVAT credit = Aggregate amount of CENVAT credit to which the person was entitled minus Amount of CENVAT credit already availed under the existing law
8 GST Policy Planning Unit
Directorate of Commercial Taxes
The amount has to be admissible as CENVAT credit under the existing Law
Transitional Arrangement for Input Tax Credit *s.140(3)…CGST+
SHALL BE ENTITLED for (100%) Credit of eligible duties on
Inputs held in stock on the appointed day
Inputs contained in semi-finished /finished goods held in stock on the
appointed day
(i) Not Liable to be registered under the existing law/ (ii) Engaged in manufacture of Exempted goods/provision of
Exempted services which are Taxable under GST (iii) Providing works contract service & was availing of benefit of
notification no.26/2012 –Service Tax dated 20-06-2012/ (iv) A first stage or a second stage dealer/registered importer/depot of
a manufacturer
CONDITIONS: 9
A registered person in GST who was
GST Policy Planning Unit Directorate of Commercial Taxes
Transitional Arrangement for Input Tax Credit *s.140(3)….CGST+
Inputs are used/intended to be used for making taxable
supplies
Eligibility of input tax credit on such inputs under the GST Act
Is in possession of valid invoice, or other prescribed documents evidencing payment of duty/tax which were issued not earlier than 12 months from the appointed day
The supplier of services is not eligible for any abatement under the GST Act[specific for s.140(3)]
To declare entitlement of credit within 90 days of the appointed day
electronically in Form GST TRAN 1, also to specify stock details in TRAN 1
--------------------------------------------------------------------------------------------------------
10
GST Policy Planning Unit Directorate of Commercial Taxes
Transitional Arrangement for Input Tax Credit *s.140(3)…CGST+
11
Credit would be available on goods (on which central excise/CVD was leviable) held in stock to a registered person other than a manufacturer/supplier of services if he is not in a possession of an invoice
etc. evidencing payment of duty/taxes in respect of inputs subject to fulfillment of prescribed conditions/ limitations /safeguards The said taxable person passes on the benefit of such credit by way of reduced prices to the recipient provided
Credit to be allowed = @60% of CGST applicable on supply of such goods where tax rate is 9% or more & @ 40% in the remaining slabs[@30% & 20% respectively in case of payment of IGST] To be credited after payment of the applicable CGST on such Conditions : Scheme shall be available for six tax periods from the appointed date Such goods were not unconditionally exempt from the entire Central Excise duty(as specified in the 1st schedule to Central Excise Tariff Act, 1985) or were not nil rated in that schedule
Document for procurement of such goods is available
Details of stock held to be submitted at the end of each off six tax periods in TRAN2
Stock on which credit is availed to be stored so that such is easily identifiable GST Policy Planning Unit
Directorate of Commercial Taxes
Transitional Arrangement for Input Tax Credit *s.140(3)…CGST+
12
Illustration:
The excise duty on “Rusks, toasted bread and similar toasted products”[190540] was ‘nil’ which has subsequently been made taxable in GST. A manufacturer of the product [190540] takes registration in GST and as on the appointed day Suppose, he has stock of sugar (an input, say) on the appointed day on which duty of Rs.10, 000/- was paid he is in possession of the duty paying document and such document is not more than 12 months old Such sugar is used or intended for use for making taxable supplies There is eligibility of ITC on sugar in GST
GST Policy Planning Unit Directorate of Commercial Taxes
Is this person entitled to take ITC of the duty paid on sugar?? If So at what will be the amount of ITC?? In what form the credit will be available??
Yes, this person is entitled to take ITC of the duty paid on sugar amounting to Rs.10, 000/- and it will be available as credit of CGST
Transitional Arrangement for Input Tax Credit *s.140(3)…CGST+
13
Illustration:
X Co. is trader of sugar He has stock of sugar on the appointed day He is not in possession of a document evidencing payment of duty There is eligibility of ITC on sugar in GST
GST Policy Planning Unit Directorate of Commercial Taxes
Is this person entitled to take ITC of the duty paid on sugar?? If So at what will be the amount of ITC?? In what form the credit will be available??
Suppose X Co. sales the identifiable stock of sugar at Rs.1, 00, 000/- CGST payable @2.5% on sale of such = Rs.2, 500/- 40% of Rs.2, 500/- = Rs.1, 000/- will be available to him as credit after he pays the output tax
Transitional Arrangement for Input Tax Credit *s.140(3)…SGST+
SHALL BE ENTITLED for (100%) Credit of VAT on
Inputs held in stock on the appointed day
Inputs contained in semi-finished /finished goods held in stock on the
appointed day
(i) Not Liable to be registered under the existing law/ (ii) Engaged in sale of Exempted goods/tax free goods/goods which
suffered tax at the first point of their sale subsequent sales of which are not subjected to tax & which are Taxable under GST/
(iii) Where the person was entitled to take credit of input tax at the time of sale of goods if any,
CONDITIONS: 14
A registered person in GST who was
GST Policy Planning Unit Directorate of Commercial Taxes
Transitional Arrangement for Input Tax Credit *s.140(3)….SGST+
Inputs are used/intended to be used for making taxable
supplies
Eligibility of input tax credit on such inputs under the GST Act
Is in possession of valid invoice, or other prescribed documents evidencing payment of duty/tax which were issued not earlier than 12 months from the appointed day
To declare entitlement of credit within 90 days of the appointed day electronically in Form GST TRAN 1, also to specify stock details in TRAN 1
--------------------------------------------------------------------------------------------------------
15
GST Policy Planning Unit Directorate of Commercial Taxes
Transitional Arrangement for Input Tax Credit *s.140(3)…SGST+
16
Credit would be available to a registered person other than a manufacturer/supplier of services on goods held in stock which suffered tax at the first point of their sale subsequent sales of which are not
subjected to tax if he is not in a possession of an invoice etc. evidencing payment of VAT subject to fulfillment of prescribed conditions/ limitations /safeguards The said taxable person passes on the benefit of such credit by way of reduced prices to the recipient provided
Credit to be allowed = @60% of SGST applicable on supply of such goods where tax rate is 9% or more & @ 40% in the remaining slabs[@30% & 20% respectively in case of payment of IGST] To be credited after payment of the applicable SGST on such Conditions : Scheme shall be available for six tax periods from the appointed date Such goods were not wholly exempt from tax under the WBVAT Act 2003
Document for procurement of such goods is available
Details of stock held to be submitted at the end of each off six tax periods in TRAN2
Stock on which credit is availed to be stored so that such is easily identifiable
GST Policy Planning Unit Directorate of Commercial Taxes
Transitional Arrangement for Input Tax Credit *s.140(3)…SGST+
17
Illustration:
A whole-seller of medicine in West Bengal has a stock of medicine on the appointed day on which tax was paid at MRP.
He has purchased the goods from Importer/ manufacturer and therefore he is in possession of the tax paying document [showing payment of tax on MRP] Invoices pertaining to such are not more than 12 months old PTS value of such goods are Rs.1, 00, 000/- whose corresponding MRP value is Rs.2, 50, 000/- evidencing payment of tax of Rs. 12, 500/- on MRP(say)
GST Policy Planning Unit
Directorate of Commercial Taxes
Is this person entitled to take ITC of the tax so paid?? If So at what will be the amount of ITC?? In what form the credit will be available??
Yes, this person is entitled to take ITC of the tax so paid amounting to Rs.12, 500/- and it will be available as credit of SGST
Transitional Arrangement for Input Tax Credit *s.140(3)…SGST+
18
Illustration:
X Co. is distributor of medicine He has stock of medicine on the appointed day on which tax has been paid on MRP at the first point He is not in possession of a document evidencing payment of tax
GST Policy Planning Unit Directorate of Commercial Taxes
Is this person entitled to take ITC of the tax paid on medicine?? If So at what will be the amount of ITC?? In what form the credit will be available??
Suppose X Co. sales the identifiable stock of medicine at Rs.1, 00, 000/- SGST payable @6% on sale of such = Rs.6, 000/- 40% of Rs.6, 000/- = Rs.2, 400/- will be available to him as credit after he pays the output tax
Transitional Arrangement for Input Tax Credit [s.140(3)]
19
Illustration:
X Co. is distributor of medicine He has stock of medicine on the appointed day on which tax has been paid on MRP at the first point He is not in possession of a document evidencing payment of VAT & Central Excise duty
GST Policy Planning Unit Directorate of Commercial Taxes
Is this person entitled to take ITC of the tax paid on medicine?? If So at what will be the amount of ITC?? In what form the credit will be available??
Suppose X Co. sales the identifiable stock of medicine at Rs.1, 00, 000/- SGST payable @6% on sale of such = Rs.6, 000/- 40% of Rs.6, 000/- = Rs.2, 400/- will be available to him as SGST credit after he pays the output tax CGST payable @6% on sale of such = Rs.6, 000/- 40% of Rs.6, 000/- = Rs.2, 400/- will be available to him as CGST credit after he pays the output tax So, total credit available = Rs.2, 400/- + Rs.2, 400/-
Transitional Arrangement for Input Tax Credit [s.140(4)]
SHALL BE ENTITLED for Credit of eligible CENVAT/VAT Credit on
[For exempt goods/services]
Inputs held in stock on the appointed
day
Inputs contained in semi-finished
/finished goods held in stock on the
appointed day
A registered person who was Engaged in manufacture of taxable as well as exempted goods/provision of taxable as well as exempted services
20
SHALL BE ENTITLED for Credit of eligible CENVAT/VAT Credit that is
[For taxable goods/services] carried forward in the return relating to the period immediately preceding the appointed day
To declare entitlement of credit within 90 days of the appointed day electronically in Form GST TRAN 1, also to specify stock details in TRAN 1
GST Policy Planning Unit Directorate of Commercial Taxes
INPUTS/INPUT SERVICES RECEIVED ON/AFTER THE APPOINTED DAY ON WHICH DUTY/TAX PAID BEFORE THE
APPOINTED DAY
CREDIT WILL BE AVAILABLE IN GST Subject to the following Conditions :
Invoice/any other duty/tax paying document for the same has to be recorded in the books of accounts within 30 days(extendable by the competent authority) from the appointed day
21
To declare entitlement of credit within 90 days of the appointed day electronically in Form GST TRAN 1
GST Policy Planning Unit Directorate of Commercial Taxes
Transitional Arrangement for Input Tax Credit [s.140(6)]
Inputs are used/intended to be used for making taxable supplies
Eligibility of input tax credit on such inputs under the GST Act
Is in possession of valid invoice, or other prescribed documents evidencing payment of duty/tax which were issued not earlier than 12 months from the appointed day
Not paying tax as a composition tax payer under the GST Act
To declare entitlement of credit within 90 days of the appointed day
electronically in Form GST TRAN 1 also to specify stock details in TRAN 1
22
GST Policy Planning Unit Directorate of Commercial Taxes
A registered person in GST who was
Paying tax at a fixed rate/fixed amount in lieu of tax payable under the existing law
SHALL BE ENTITLED for (100%) Credit of eligible duties /VAT on
Inputs held in stock on the appointed day
Inputs contained in semi-finished /finished goods held in stock on the appointed day
INPUT SERVICE DISTRIBUTOR
It is AN OFFICE of the supplier of goods/services which receives tax
invoices for the purpose of distribution of credit to a SUPPLIER of taxable goods/services having same PAN
The provision overrides all the other provisions contrary to it
CREDIT of Service Tax
SERVICE RECEIVED - PRE GST will be available for distribution as
credit in GST even if the invoices are received on or
after the appointed day
23
Transitional Arrangement for Input Tax Credit CREDIT DISTRIBUTION OF SERVICE TAX BY INPUT SERVICE DISTRIBUTORS
[s.140(7)]
--- this provision is specific to CGST Law
GST Policy Planning Unit Directorate of Commercial Taxes
BY A PERSON HAVING
CENTRALIZED REGISTRATION
UNDER THE EARLIER LAW
TRANSFER OF UNUTILIZED
CENVAT CREDIT
•Allowed to take credit of CENVAT credit c/f in the return for period ending with the day immediately preceding the appointed day
Subject to the following conditions: (i) Return for period ending with the day
immediately preceding the appointed day filed within 03 months from the appointed day
(i) The aforesaid return is either original/revised where claim is reduced from the earlier claim
(ii) Amount has to be admissible as credit under the earlier law and ITC under GST Law
24
Transitional Arrangement for Input Tax Credit TRANSFER OF UNUTILIZED CENVAT CREDIT BY A PERSON HAVING CENTRALIZED REGISTRATION
[s.140(8)]
Credit is transferable to any registered
taxable person having same PAN --- this provision is specific to CGST Law
GST Policy Planning Unit Directorate of Commercial Taxes
CENVAT Credit for Input Services reversed due to non – payment of consideration within three months
CREDIT can be reclaimed Payment of consideration for supply of services has to be made within three
months from the appointed day
25
Transitional Arrangement for Input Tax Credit RECLAIM OF REVERSED CREDIT DUE TO NON – PAYMENT OF CONSIDERTION WITHIN 3
MONTHS[s.140(9)]
--- this provision is specific to CGST Law
GST Policy Planning Unit Directorate of Commercial Taxes
[s.141]
Conditions:
Removal/Dispatch to the job worker prior to the appointed day&
Returned within six months from the appointed day/extended period (not more than 2 months) Manufacturer & Job Worker both declare the details of Inputs/Semi-finished/Finished Goods held in stock by the Job Worker on the appointed date
No Tax is payable
#To be recovered as arrears of GST
Not Returned within six months /extended
period
Manufacturer can transfer finished goods from the premise where it have been sent for Export - with/without payment of tax within six months as per earlier law
#Provided goods are taxable under the GST Law 26 GST Policy Planning Unit
Directorate of Commercial Taxes
To declare in TRAN 1 within 90 days
Miscellaneous Transitional Provisions : [s.142(1)]
Goods which were Earlier Exempted but Taxable
under GST
Goods on which Duty/Tax paid under the earlier law
When, Goods were removed/sold within 6 months prior to the appointed day &
Returned within 6 months from the appointed day
Proper Officer can satisfactorily identify the goods, then for
No Tax is payable by the person returning the
Goods
Return is not made by a registered taxable person: Eligibility for Refund of the duty/tax paid under existing law
Return is made by a registered taxable person: Return of goods shall be deemed to be a supply
27 GST Policy Planning Unit Directorate of Commercial Taxes
Miscellaneous Transitional Provisions : [s.142(2)]
Price is REVISED after the appointed day in
respect of a previous contract
Documents that may be issued by the supplier
• Supplementary Invoice/Debit Note
For Upward Revision
• Supplementary Invoice/Credit Note
For Downward Revision
Documents shall be deemed to have been issued in respect of an outward supply made under GST
28 GST Policy Planning Unit
Directorate of Commercial Taxes
Miscellaneous Transitional Provisions :REFUND/RECOVERY [142(3) – (9)]
CENVAT/VAT Credit as per Earlier Law
Refund/ Recovery
Liability of Output Duty/ Tax as per Earlier Law
Assessment/Adjudication Proceeding as per Earlier
Laws(any tax/penalty/interest)
Revision of return as per Earlier Law
Proceeding of appeal, revision, review or reference initiated before/on/after the appointed day to be
disposed of as per the earlier law
REFUND CLAIMS FILED BEFORE/ON/AFTER THE APPOINTED DAY for any DUTY/TAX etc. PAID
BEFORE THE APPOINTED DAY to be disposed of as per the provisions of earlier law 29 GST Policy Planning Unit
Directorate of Commercial Taxes
Miscellaneous Transitional Provisions REFUND/RECOVERY [s.142(3) – (9)]
REFUND - Pending or accruing from
appeal, etc
To be generally paid in Cash (CGST) & in Cash as per the provisions of earlier law
(SGST)
Rejected Claim of Refund to LAPSE
RECOVERY resulting from proceedings under the
earlier law To be Recovered as an arrear of GST
Amount refundable/recoverable shall not be admissible as ITC under GST 30
No refund in case CENVAT/VAT credit is c/f
Claim for refund after the
appointed day
Duty/Tax paid under earlier law for (i) export before/after the appointed day (ii) Services not provided
To be disposed as per earlier law and
if payable to be paid in cash
To be disposed as per earlier law
GST Policy Planning Unit Directorate of Commercial Taxes
• Goods and/or services supplied on or after the appointed date
• Contract entered prior to the appointed date
Supply to be taxed under
GST Law
• Irrespective of the Time of Supply of goods /services
• To the extent Duty/tax leviable under the earlier law
No Tax to be paid under
GST
• Both VAT & Service Tax paid on procurement
• Credit of the above will be available to the extent supplies made after the appointed day….. To declare in TRAN 1 within 90 days
Availability of credit in
certain cases
1
2
3
Miscellaneous Transitional Provisions: Taxability in Certain Cases[s.142(10)/(11)] :
31
GST Policy Planning Unit Directorate of Commercial Taxes
Goods Sent on approval basis
Rejected Goods returned within six
months
Rejected Goods returned after six months/ extended
period(Max. 2 months)
Goods taxable under GST
No Tax is payable on returned goods
Not earlier than six months prior to the appointed dated
Rejected/Not Approved by the buyer
Goods Rejected but not returned within six
months/ extended period
Goods taxable under GST
Tax is payable by the person returning the
goods
Tax is payable by the person who sent the goods on approval
basis
32
To be declared by supplier within 90 days in Form GST TRAN 1 GST Policy Planning Unit
Directorate of Commercial Taxes
MISCELLANEOUS TRANSITIONAL PROVISIONS:
TAX PAID ON GOODS/ CAPITAL GOODS LYING WITH AGENTS TO BE ALLOWED AS
CREDIT [s.142(14)]
Conditions:
Agent is registered under GST
Principal & Agent both declare the details of stock of Goods lying with the
agent immediately preceding the appointed day
Invoices were issued not earlier than 12 months prior to the appointed
day
Principal has either reversed or not availed of the ITC in respect of such
goods
To declare within 90days in TRANS 1
For Goods belonging to Principal lying with the agent on the appointed day
Agent is entitled to take credit of tax paid on such goods
--- this provision is specific to SGST Law
33 GST Policy Planning Unit
Directorate of Commercial Taxes
Miscellaneous Transitional Provisions DEDUCTION OF TAX AT SOURCE [s. 142(13)]
Tax was required to be deducted on such sale
under earlier law
Goods sold/invoice issued prior to the
appointed day
Payment made against such sale, on or after the appointed day
Will not be considered for TDS under GST Law
--- this provision is specific to SGST Law
34
GST Policy Planning Unit Directorate of Commercial Taxes
Eligible duties for the purpose of s. 140(3)/(4)/(6)
35
GST Policy Planning Unit Directorate of Commercial Taxes
(i) the additional duty of excise leviable under section 3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957[was leviable on sugar, tobacco, cotton fabrics, rayon or artificial silk fabrics and woollen fabrics produced or manufactured in India]
(ii) the additional duty leviable under sub-section (1) of section 3 of the Customs Tariff Act, 1975[Additional duty equal to excise duty on imported articles..Countervailing Duty]; and (iii) the additional duty leviable under sub-section (5) of section 3 of the Customs Tariff Act, 1975[Additional duty equal to sales tax, local taxes and other charges on imported articles….Special Additional Duty]
(iv) the additional duty of excise leviable under section 3 of the Additional Duties of Excise (Textile and Textile Articles) Act, 1978 [leviable on various textile articles] (v) the duty of excise specified in the First Schedule to the Central [Chapters 1 -98 of the
Central Excise Tariff]
(vi) the duty of excise specified in the Second Schedule to the Central Excise Tariff Act, 1985;[ a special duty of excise, in addition to the duty of excise as in (v) above on products like Unmanufactured Tobacco etc.]
(vii) the National Calamity Contingent Duty leviable under section 136 of the Finance Act, 2001; [Duty of excise imposed on Panmasala, Cigarettes, Motor Car etc. as way of surcharge]
First Stage/Second Stage dealer:-
36
GST Policy Planning Unit Directorate of Commercial Taxes
(Rule 2 of Central Credit Rule 2004: (j) “First stage dealer" means a dealer, who purchases the goods directly from,- the manufacturer under the cover of an invoice issued in terms of the provisions of Central Excise Rules, 2002 or from the depot of the said manufacturer, or from premises of the consignment agent of the said manufacturer or from any other premises from where the goods are sold by or on behalf of the said manufacturer, under cover of an invoice; or an importer or from the depot of an importer or from the premises of the consignment agent of the importer, under cover of an invoice (s) "Second stage dealer" means a dealer who purchases the goods from a first stage dealer. ]
37
GST Policy Planning Unit Directorate of Commercial Taxes;
Govt. of West Bengal
NOTE: This presentation is clarificatory in nature and not meant for interpretation of provisions of relevant act and rules.