Section 117(4) in Kerala Goods and Services Tax Rules, 2017
(4)(a)(i)A registered person, holding stock of goods which have suffered tax at the first point of their sale in the State and the subsequent sales of which are not subject to tax in the State availing credit in accordance with the proviso to sub-section (3) of section 140 shall be allowed to avail input tax credit on goods held in stock on the appointed day in respect of which he is not in possession of any document evidencing payment of value added tax.(ii)The credit referred to in sub-clause (i) shall be allowed at the rate of sixty per cent. on such goods which attract State tax at the rate of nine per cent. or more and forty per cent. for other goods of the State tax applicable on supply of such goods after the appointed date and shall be credited after the State tax payable on such supply has been paid:Provided that where integrated tax is paid on such goods, the amount of credit shall be allowed at the rate of thirty per cent. and twenty per cent. respectively of the said tax.(iii)The scheme shall be available for six tax periods from the appointed date.(b)Such credit of State tax shall be availed subject to satisfying the following conditions, namely:-(i)such goods were not wholly exempt from tax under the Kerala Value Added Tax Act, 2003 (30 of 2004).(ii)the document for procurement of such goods is available with the registered person.(iii)the registered person availing of this scheme and having furnished the details of stock held by him in accordance with the provisions of clause (b) of subrule (2) of rule 1, submits a statement in FORM GST TRAN-2 at the end of each of the six tax periods during which the scheme is in operation indicating therein the details of supplies of such goods effected during the tax period;(iv)the amount of credit allowed shall be credited to the electronic credit ledger of the applicant maintained in FORM GST PMT-2 on the Common Portal.(v) the stock of goods on which the credit is availed is so stored that it can be easily identified by the registered person.
