Transition credit and Reversal of input tax credit

Posted on 11 June 2022 Category : GST terms difference

How to differentiate Reversal of input tax credit with Transition credit?

Difference between Transition credit and Reversal of input tax credit under GST terms

What is Reversal of input tax credit? How does Transition credit work under GST regime? What are the difference between Reversal of input tax credit and Transition credit?

A registered person, who has availed of input tax credit on any inward supply of goods or services or both, but fails to pay to the supplier thereof, the value of such supply along with the tax payable thereon, within the time limit specified in the second proviso to sub-section (2) of section 16, shall furnish the details of such supply, the amount of value not paid and the amount of input tax credit availed of proportionate to such amount not paid to the supplier in FORM GSTR-2 for the month immediately following the period of one hundred and eighty days from the date of the issue of the invoice:

Transition credit means balance of input tax credit under Pre-GST Regime to carry for the purpose of setoff against the GST Liability in GST Regime. Expound arrangements have been made to convey forward the ITC earned under the current law. Such credit ought to be passable under the GST law. Be that as it may, the assessable individual selecting organization plan would not be qualified for convey forward of the current ITC.

The details about Reversal of input tax credit and Transition credit with simple language from GST terms have been mentioned in this web blog separately. I suggest you to read these articles on Reversal of input tax credit and Transition credit, so as to enable you to have a clear idea on these shipping terms.

For your immediate reference, we give below web links on Reversal of input tax credit and Transition credit separately below. You may kindly read the below links to know more about Transition credit and Reversal of input tax credit.

Term Reversal of input tax credit under GST

Term Transition credit under GST

The above information easily explains about Transition credit and Reversal of input tax credit.

We hope, you have satisfied with the difference between Reversal of input tax credit and Transition credit explained above. Do you have different thought on difference between Transition credit and Reversal of input tax credit?

Share below your thoughts about Reversal of input tax credit and Transition credit

Learn Exports Imports Free, Click here

Click here to know GST rate of your goods or service

CGST Act section 10 composition Levy under GST

CGST Act section 11 power to grant exemption from tax

CGST Act section 12 Time of supply of goods

CGST Act section 13 Time of supply of services

CGST Act Section 14 Change in rate of tax in respect of supply of goods or services

CGST Act Section 15 value of taxable supply under GST

CGST Act section 16 eligibility and conditions for taking input tax credit

CGST Act Section 17 Apportionment of credit and blocked credits

CGST Act section 18 availability of credit in special circumstances