Reg Excise

[Former Member]

Dear Experts,

        I have created a PO with a non cenvatable tax code ( 12.33 % ED non cenvatable ).

Kindly suggest me

While doing GRN in MIGO, should I have to select capture and post Excise invoice or I should select No excise entry.

what will be the impact of selecting capture and post Excise invoice

and what will be the impact of selecting No excise entry.

thanks in advance.

[former_member186100 · Accepted solution]

you need to proceed as you do with cenvatable material , it is just posting this excise invoice will not create any accounting entries in cenvat register and all tax values will go into inventory.

process wise you need not make anything different. Selecting no excise entry would be wrong as you have an excise invoice here , so it is out of question. However financially it would not matter even if you select no excise entry.

[Former Member · Accepted solution]

Dear Avinash,

        thanks for the reply.

When we select the capture and post excise invoice during MIGO, then the part 1 entry will also gets updated. Is it correct for non cenvatable tax code.

Thanks in advance

[former_member186100 · Accepted solution]

yes , and there is nothing wrong with it. Excise registers are for excisible goods , it does not matter if you cannot claim or claim credit for it.

[former_member187965 · Accepted solution]

Hi Amith,

As per my knowledge, Excise entries are not shown in the excise registers, if company is not availing the excise duty credit.

As in your case, the excise duty is non-cenvatable then it is not required to show the excise entries in registers as company is not going to avail this excise amount credit. The main purpose is to load the excise duty amout to material cost.

So, select the 'No Excise Entry' in MIGO and the excise amounts will be loaded to material cost. Also there will not be any entries in Excise registers. If required then discuss with the Excise Dept of the company.