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Get to know the fine print in GST

Traders who cannot meet the stipulated conditions should not opt for deemed credit

TNC Rajagopalan

Many small traders are happy that they can take deemed credit on their stocks the day the Goods and Services Tax (GST) laws come into effect, even if they do not have duty or tax paying documents. They must, however, take careful note of the onerous conditions. The proviso to Section 140 (3) of the Central GST Act (CGST) says the benefit of deemed credit must be passed on to the recipient. This also applies under State GST (SGST) laws. Rule 3 of the Transitional Provisions Rules restrict this facility to persons registered under the GST laws but not registered under the existing laws ...