Section 140(1) in The Punjab Goods and Services Tax Act, 2017
(1)A registered person, other than a person opting to pay tax under section 10, shall be entitled to take, in his electronic credit ledger, credit of the amount of Value Added Tax, if any, carried forward in the return relating to the period ending with the day immediately preceding the appointed day, furnished by him under the existing law in such manner as may be prescribed:Provided that the registered person shall not be allowed to take credit in the following circumstances, namely: -(i)where the said amount of credit is not admissible as input tax credit under this Act; or(ii)where he has not furnished all the returns required under the existing law for the period of six months immediately preceding the appointed date; orProvided further that so much of the said credit as is attributable to any claim related to section 3, sub-section (3) of section 5, section 6,section 6A or subsection (8) of section 8 of the Central Sales Tax Act, 1956 which is not substantiated in the manner, and within the period, prescribed in rule 12 of the Central Sales Tax (Registration and Turnover) Rules, 1957 shall not be eligible to be credited to the electronic credit ledger:Provided also that an amount equivalent to the credit specified in the second proviso shall be refunded under the existing law when the said claims are substantiated in the manner prescribed in rule 12 of the Central Sales Tax (Registration and Turnover) Rules, 1957.
