Eligible Cenvat Credit carried forward

Eligible Cenvat Credit carried forward :

Eligible Cenvat credit on inputs and input services can be carried forward – section 140(1) of CGST Act.

Unavailed Cenvat Credit on eligible capital goods not carried forward in a return can taken – section 140(2) of CGST Act.

The manufacturer has to submit application in form GST TRAN 1 within 60 days – rule 1(1) of Transitional Provisions.

As per section 140 of CGST Act, such carry forward is automatic. However, the rule uses the word ‘apply’.

This implies that such carry forward is not automatic and permission is required.