Input tax credit not admissible for Krishi Kalyan Cess carried forward

Accumulated credit of KKC that appeared in the Service Tax return of June 30, 2017 will not be admissible input tax credit

Q) We had accumulated credit of Krishi Kalyan Cess (KKC) that we carried over to the GST input tax credit by filing TRAN-1 return. Our CA, who told us that we can do so, now says that the credit of that Cess is not admissible. What is the correct position?

The Authority for Advance Ruling in Maharashtra has ruled in the case of Kansai Nerolac Paints Ltd that accumulated credit of KKC that appeared in the Service Tax return of June 30, 2017, which is carried forward to the electronic credit ledger under the CGST Act, 2017, will not be