Credit of Krishi Kalyan Cess appearing in the service tax return of ISD will not be an eligible transition credit under GST – Maharashtra AAAR

Kansai Nerolac Paints Ltd. in ORDER NO. MAH/AAAR/SS-RJ/03/2018-2019 (A.A.A.R. – GST- Maharashtra)

In this matter , it was held by the Appellate Authority for Advance Rulings, Maharashtra that where appellant company is engaged in business of manufacture of paints and engaged in provision of works contract service as well, accumulated credit by way of Krishi Kalyan Cess (KKC) as appeared in Service tax return of Input Service Distributor (ISD) on 30-6-2017 which is carried forward in electronic credit ledger maintained by appellant under CGST Act, 2017, shall not be allowed to be taken as admissible input tax credit.

To read the complete judgment 2018 Taxo.online 612