Q. 355 Can a person registered under erstwhile Service Tax , providing Services of Renting of Heavy Equipment on hire can claim credit of VAT in respect of Equipment purchased in Feb 2017 , under Trans -1 under Capital Goods category ?

Ans. Under GST Tran-1, the balance claims of unavailed credit which was earlier eligible for credit to be considered only. If the credit of VAT on above mentioned services was allowed to you in the earlier tax regime and it is un-availed then you may proceed taking credit else you are not eligible for the credit. 

Q. 354 Can excess GST paid in GSTR 3B in comparison to GSTR 1 in FY 2021-22 can be adjusted GST output liability after November 2022 ?

Ans. In case of excess discharge of tax payment in GSTR-3B, the taxpayers are required to claim the refund of the excess tax paid. There is no provision limiting the adjustment of the GST output liability.

Q. 353 Whether Show Cause Notices issued and signed by Departmental Audit Authority pursuant to Audit undertaken by them- tax recoverable in terms of section 74 along with interest u/s 50 and penalty u/s 122- can be regarded as notice issued u/s 74(1) and 100% penalty levied instead of 15% leviable otherwise ?

Ans. As per section 74, when the tax amount along with the interest is paid before issuance of notice then 15% of the tax amount is payable as penalty. When the tax amount along with the interest is paid within 30 days of issuance of notice then 25% of the tax amount is payable as penalty. When the tax amount along with the interest is paid within 30 days of communication of order then 50% of the tax amount is payable as penalty. Further, when the tax amount along with the interest is paid after 30 days of communication of order then 100% of the tax amount is payable as penalty. In the above case, we are made to understand that the show cause notice has already been issued hence, 15 % tax amount payable as penalty is not to be considered.