Can Unregistered Persons Claim ITC of Excise Duty by Registering under GST? If There Is No Proof of Payment of Excise

As the Goods and Services Tax (GST) regime comes into effect, there is a lot of confusion among business owners regarding the Input Tax Credit (ITC) of excise duty paid prior to GST registration. In this article, we will discuss whether unregistered persons can claim ITC of excise duty by registering under GST if there is no proof of payment of excise.

Firstly, it is important to understand what excise duty is. Excise duty is a tax levied on the manufacture or production of goods in India. It is a central government tax and is levied under the Central Excise Act, 1944. Excise duty is levied on the value of goods at the time of their manufacture or production.

Under the GST regime, businesses can claim ITC for tax paid on inputs used in the manufacture or production of goods or services. However, to claim ITC, the person must be registered under GST and must have paid the tax on the inputs used. The question arises whether an unregistered person can claim ITC of excise duty by registering under GST if there is no proof of payment of excise.

According to the GST law, an unregistered person cannot claim ITC of excise duty paid prior to GST registration. This means that the person will not be able to claim ITC for the excise duty paid on the inputs used in the manufacture or production of goods or services. The reason for this is that the ITC can only be claimed if the tax has been paid and the person is registered under GST.

However, if the unregistered person registers under GST, they will be able to claim ITC of excise duty paid on inputs after the registration date. This means that the ITC can only be claimed for the excise duty paid after the person has registered under GST.

In conclusion, an unregistered person cannot claim ITC of excise duty paid prior to GST registration. The person will only be able to claim ITC for the excise duty paid on inputs after the registration date. Therefore, it is important for businesses to register under GST to claim ITC for taxes paid.

Under the GST regime, businesses can claim Input Tax Credit (ITC) for tax paid on inputs used in the manufacture or production of goods or services. However, to claim ITC, the person must be registered under GST and must have paid the tax on the inputs used. In this article, we will discuss whether unregistered persons can claim ITC of excise duty by registering under GST if there is no proof of payment of excise.