Section 140 of CGST Act, 2017 : Section 140: Transitional Arrangements For Input Tax Credit

Explanation using Example

Imagine a company, 'ABC Manufacturing Ltd.', was registered under the previous tax regime and paid Central Excise Duty on its manufactured goods. As India transitioned to the Goods and Services Tax (GST) regime on July 1, 2017 (the appointed day), 'ABC Manufacturing Ltd.' became a registered person under the GST Act. They had a certain amount of CENVAT credit (a type of credit for the central excise paid on goods manufactured) that they had not yet utilized.

Under Section 140 of the Central Goods and Services Tax Act, 2017, 'ABC Manufacturing Ltd.' is allowed...

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