As per Circular No. 33/07/2018-GST dated 23rd Feb 2018, the taxpayer as on 1st of July is not eligible to take the credit on the blocked CENVAT Credit from the carried forward balance in the Electronic Credit Ledger. Blocked input tax credit here refers to input tax credit taken on items such as pipelines laid outside the factory or telecommunication towers.
As per Circular No. 33/07/2018-GST dated 23rd Feb 2018, the taxpayer will not utilize the CENVAT Credit in the Electronic Credit Ledger for the amount carried forward on the amount which is pending with the department as on 1st July 2017.
As per the transitional provisions in GST, existing credit of CVD (Countervailing Duty) and SAD (Special Additional Duty) available as cenvat credit will be carried forward as IGST Credit in the electronic credit ledger based on the input tax credit shown in the returns filed immediately prior to the appointed day.
As per the transitional provisions, existing input tax credit under Central Excise, Service Tax and Value Added Tax is available is carried forward to GST if the same credit is taken in the books and part of the return filed before the date of rollout of GST and the same is available under GST also as input tax credit.