Question15:

Whether Credit of Special Additional Duty (SAD) is allowed under GST Act via Trans-1?

Answer:

The provisions relating to Transition are given in sections from 140 to Section 142 Now there are two possibilities first you are already registered as manufacturer and have already taken credit of SAD in this case there is no problem the closing balance of Cenvat can be taken forward this automatically include SAD. The second possibility is that you have not taken credit because you are a trader or your product was exempted from excise in this case credit SAD can be  taken Please see explanation to section 140  Explanation 1 and III is as follow Explanation 1.'For the purposes of sub-sections (3), (4) and (6), the expression 'eligible duties' means''

                 (i) the additional duty of excise leviable under section 3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957;

                 (ii) the additional duty leviable under sub-section (1) of section 3 of the Customs Tariff Act, 1975;

                 (iii) the additional duty leviable under sub-section (5) of section 3 of the Customs Tariff Act, 1975;

                 (iv) the additional duty of excise leviable under section 3 of the Additional Duties of Excise (Textile and Textile Articles) Act, 1978;

                 (v) the duty of excise specified in the First Schedule to the Central Excise Tariff Act, 1985;

                   (vi) the duty of excise specified in the Second Schedule to the Central Excise Tariff Act, 1985; and

                (vii) the National Calamity Contingent Duty leviable under section 136 of the Finance Act, 2001;

in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the appointed day. According to above explanation credit of SAD can be availed in TRANS 1 (Reply dt. 08/12/2017)