Provided that the registered person shall not be allowed to take credit
in the following circumstances, namely : –
(i) where the said amount of credit is not admissible as input tax
credit under this Act ; or
(ii) where he has not furnished all the returns required under the
existing law for the period of six months immediately preceding the
appointed date ; or
(iii) where the said amount of credit relates to units not entitled to
claim set-off under rule 79 of the Maharashtra Value Added Tax
Rules, 2005 :
Provided further that so much of the said credit as is attributable
to any claim related to section 3, sub-section (3) of section 5, section 6,
section 6A or sub-section (8) of section 8 of the Central Sales Tax Act,
1956 which is not substantiated in the manner, and within the period,
prescribed in rule 12 of the Central Sales Tax (Registration and Turnover)
Rules, 1957 shall not be eligible to be credited to the electronic credit
ledger :
Provided also that an amount equivalent to the credit specified in
the second proviso shall be refunded under the existing law when the
said claims are substantiated in the manner prescribed in rule 12 of the
Central Sales Tax (Registration and Turnover) Rules, 1957.
(2) A registered person, other than a person opting to pay tax under
section 10, shall be entitled to take, in his electronic credit ledger, credit of
the unavailed input tax credit in respect of capital goods, not carried forward
in a return, furnished under the existing law by him, for the period ending
with the day immediately preceding the appointed day in such manner as
may be prescribed :
Provided that the registered person shall not be allowed to take credit
unless the said credit was admissible as input tax credit under the existing
law and is also admissible as input tax credit under this Act.
Explanation.––For the purposes of this section, the expression
“unavailed input tax credit” means the amount that remains after subtracting
the amount of input tax credit already availed in respect of capital goods by
the taxable person under the existing law from the aggregate amount of input
tax credit to which the said person was entitled in respect of the said capital
goods under the existing law.
(3) A registered person, who was not liable to be registered under the
existing law or who was engaged in the sale of exempted goods or tax free
goods, by whatever name called,or goods which have suffered tax at the first
point of their sale in the State and the subsequent sales of which are not
subject to tax in the State under the existing law but which are liable to tax
under this Act or where the person was entitled to the credit of input tax at
the time of sale of goods, if any, shall be entitled to take, in his electronic
credit ledger, credit of the value added tax and entry tax in respect of inputs
held in stock and inputs contained in semi-finished or finished goods held in
stock on the appointed day subject to the following conditions, namely :––
(i) such inputs or goods are used or intended to be used for making
taxable supplies under this Act ;
(ii) the said registered person is eligible for input tax credit on such
inputs under this Act ;
(iii) the said registered person is in possession of invoice or other
prescribed documents evidencing payment of tax under the existing law
in respect of such inputs ; and
(iv) such invoices or other prescribed documents were issued not
earlier than twelve months immediately preceding the appointed day :
Provided that where a registered person, other than a manufacturer
or a supplier of services, is not in possession of an invoice or any other
documents evidencing payment of tax in respect of inputs, then, such
registered person shall, subject to such conditions, limitations and
safeguards as may be prescribed, including that the said taxable person
shall pass on the benefit of such credit by way of reduced prices to the
recipient, be allowed to take credit at such rate and in such manner as
may be prescribed.
(4) A registered person, who was engaged in the sale of taxable goods as
well as exempted goods or tax free goods, by whatever name called, under
the existing law but which are liable to tax under this Act, shall be entitled
to take, in his electronic credit ledger,-
(a) the amount of credit of the value added tax and entry tax, if any,
carried forward in a return furnished under the existing law by him in
accordance with the provisions of sub-section (1) ; and
(b) the amount of credit of the value added tax and entry tax, if any,
in respect of inputs held in stock and inputs contained in semi-finished
or finished goods held in stock on the appointed day, relating to such
exempted goods or tax free goods, by whatever name called, in accordance
with the provisions of sub-section (3).
(5) A registered person shall be entitled to take, in his electronic credit
ledger, credit of value added tax and entry tax, if any, in respect of inputs
received on or after the appointed day but the tax in respect of which has
been paid by the supplier under the existing law, subject to the condition
that the invoice or any other tax paying document of the same was recorded
in the books of account of such person within a period of thirty days from the
appointed day :
Provided that the period of thirty days may, on sufficient cause being
shown, be extended by the Commissioner for a further period not exceeding
thirty days :
Provided further that the said registered person shall furnish a
statement, in such manner as may be prescribed, in respect of credit that has
been taken under this sub-section.
(6) A registered person, who was either paying tax at a fixed rate or
paying a fixed amount in lieu of the tax payable under the existing law shall
be entitled to take, in his electronic credit ledger, credit of value added tax
in respect of inputs held in stock and inputs contained in semi-finished or
finished goods held in stock on the appointed day subject to the following
conditions, namely :––
(i) such inputs or goods are used or intended to be used for making
taxable supplies under this Act ;
(ii) the said registered person is not paying tax under section 10 ;
(iii) the said registered person is eligible for input tax credit on
such inputs under this Act ;
(iv) the said registered person is in possession of invoice or other
prescribed documents evidencing payment of tax under the existing law
in respect of inputs ; and
(v) such invoices or other prescribed documents were issued not
earlier than twelve months immediately preceding the appointed day.
(7) The amount of credit under sub-sections (3), (4) and (6) shall be
calculated in such manner as may be prescribed.