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Input Tax Credit of the old regime that you want to claim in the new regime (report in TRAN-1)
Avoid any disruption to material sent to job workers ( report in TRAN-1)
Report agent principal dealing and dispatch of goods, works contracts (report in TRAN -1)
Tax refunds and claims under the old regime (not reportable in TRAN -1 or TRAN -2)
Things to remember for Transition to GST
Transition forms must be filed for each GSTIN separately.
Any credit that you want to carry forward from the old regime must be eligible credit under GST as well.
Accumulated credits of old regime can be taken to GST. This is allowed only when you have filed past six months returns under
the old regime. So you must file old returns of VAT/ Excise/ Service Tax properly.
Any central taxes and duties such as Excise and Service tax will be carried forward as CGST
Any state taxes such as VAT will be carried forward as SGST
1. In column 1 mention the registration number under State VAT i.e the TIN
2. In column 2 state the closing balance of the input tax credit in the return filed for the period ending on 30th June 2017.
3. In column 3 , 5 & 8 the Turnover for which the C-Form , F Form & H/I Form respectively are pending must be provided.
4. In column 4, 6 & 9 the differential tax on its respective Turnover must be entered (Eg: if concessional CST is 2% & VAT is 14.5
% , then the differential tax rate is 12.5% ).This will be deducted from the closing balance of input tax credit in the return &
hence will be deducted from Column 2
5. In column 7 the ITC reversed by you related to column 3 & 5 must be entered.This amount will be eligible to be carried forward
as ITC under GST & hence will be added to the amount in column 2
6. Column 10 is calculated as follows :- Column No 2 (4+6-7+9).This is the balance ITC of VAT/Entry tax that will be transferred
to you under GST regime.
6. Details of capital goods for which unavailed credit has not been carried forward under existing law (Section 140(2))
This requires you to provide details of any unavailed input credit pertaining to capital goods. Credit of taxes paid on capital goods
is usually spread over more than one financial year. In case you were not able to fully claim input credit of taxes in full by 30th June,
the remaining portion can be claimed by reporting here.
Section 140(2) of the CGST Act basically refers to carry forward of CENVAT credit for capital used which was not carried forward in
a return of the old regime. If a cenvat credit has been carried forward in an earlier return it will be included in 5a.mentioned above.
This information has to be provided under 6a.and 6b. below
a) Central Tax portion of unavailed input tax credit on capital goods
Amount of unavailed cenvat credit for capital goods which you want to carry forward to electronic ledger as central tax,
which is for CENVAT or Excise, or Countervailing Duty or Special Additional Duty (Central Taxes)
In this table you have to give the details of unavailed cenvat credit of Excise Duty or SAD or CVD of Capital goods
1. In column 2 & 3 provide the Invoice number & date of the capital good.
2. The suppliers registration number as per old regime, under excise which is the ECC number must be provided in column
number 4
3. In column 5 give your registration number which is either the service tax registration number or the ECC number
4. In column 6 provide the value of the capital good, in column 7 the Excise Duty or the CVD paid & in column 8 the SAD paid.
5. In column 9, enter the CENVAT Credit which was eligible under the old regime. This amount cannot exceed the Total of
Column 7 & 8.
6. The CENVAT Credit already availed under the old regime must be provided in Column 10. Such amount cannot exceed the
value in Column 9.
7. The balance unavailed CENVAT Credit i.e Column No 9 minus Column No 10 is the remaining or the balance CENVAT Credit
eligible as ITC of Central Tax which is reflected in Column No 11.
[Any one of the above may be true. These are as per the Section 140(3) of the CGST Act]
It also applies to a person who was manufacturing both taxable and exempted goods or providing taxable as well as exempt
services. And tax in the stock/inputs which was used for exempted supply under old regime but is taxable under the GST.
[ As per section 140(4)(b) of the CGST Act]
Also applied to a person registered as a composition dealer (paying tax at fixed rate or fixed amount) in old regime, but a normal
registered taxpayer under GST.
All these above-mentioned persons can claim credit of eligible taxes in respect of stocks held by them when they meet these
conditions:
1. such stock is used or will be used for making taxable supplies under GST
2. The input credit is eligible under GST
3. They have invoice or other documents evidencing payment of duty under the old regime for such inputs;
4. These invoices or documents are not more than 12 months old counting backwards from 30th June 2017
5. The services provider is not eligible for any abatement under GST
6. They have not opted for composition scheme
In short these are the persons who have stock as on 30th June 2017 but were unable to claim the credit of such stock through
returns filed by them which are already mentioned in 5a.b. or c. of FORM GST TRAN -1 ( see above).
a) Input credit claims other than those claimed in 5a. above
Provide the following
HSN ( at 6 digit level)
Unit
Quantity
Value
Eligible duties paid on such inputs
Part 7A is Where duty paid invoices or other documents are available to be filled for inputs or for inputs contained in semi-finished
and finished goods by a manufacturer or service provider to claim input tax credit of excise duty or service tax as input tax credit of
CGST.
Part 7B is to be filled only by those who are not manufacturer or service provider who was unregistered in the old regime basically
to be filled by dealers or traders to provide information of Inputs where duty paid invoices or documents are not available. Such a
person also has to fill TRAN-2 which we will also discuss.
b) VAT and entry tax paid on inputs or input services where documents of payment of tax are available and which will be
carried forward as SGST/UTGST: Where input or input services are received on or after the 1st july 2017 but the duty or
tax on the same was paid by the supplier under the old regime.
Registered person can take credit of eligible duties and taxes paid by them when the invoice has been recorded in the books within
30 days from 1st July. (The period can be extended by the Commissioner GST by another 30 days).
This situation is covered under section 140(5) of the CGST Act & the following details must be submitted.
c) Amount of VAT and entry tax paid on inputs supported by invoices/documents evidencing payment of tax carried
forward to electronic credit ledger as SGST/UTGST under section 140(3), 140(4)(b) and 140(6)
1. The details of the stock such as the description, unit, quantity of goods held, the value of the goods & the State Tax(VAT or
Entry Tax) must be provided in column 1-5
2. In column 6, the total input tax credit already claimed under the old regime must be entered.
3. In column 7, the input tax related to exempt sales (old regime) but taxable under GST must be filed.This input tax credit would
not have been claimed the old regime & it is eligible now if such goods are taxable or where a composition dealer in old regime
is now registering as normal taxpayer.
4. In column 8 the remaining balance will be eligible as input credit of SGST/UTGST
d) Stock of goods not supported by invoices/documents evidencing payment of tax (for only those states having VAT at
single point)
This portion must be filled if you are trader or dealer who is unregistered under the old regime and where you do not have the
invoice or other prescribed documents evidencing payment of VAT/Entry Tax which will be claimed as ITC of SGST after filing
FORM GST TRAN 2.
Please note that a manufacturer or a service provider cannot fill this table.
Also this applies to states where the VAT need to paid at the single point. (i.e tax is paid by the manufacturer or the importer only )
like in Punjab.
Provide the following details:
Description
Unit
Quantity
Value
Tax paid
8. Details of transfer of cenvat credit for registered person having centralized registration under existing law (Section
140(8)) This is applicable for transfer of input tax credit related to service tax.
The following details are required
b) Held as job-worker
If you are a job worker then you must give details of goods held by you for the Principal in 9 (b)
12. Details of goods sent on approval basis six months prior to 1st July 2017 (Section 142(12))
This is for goods that are sent on approval basis not earlier than 6 months prior to July 1st 2017. Following details are required
1. In column 2 the document number on the basis of which the goods are transferred.
2. In column 3 document date, the date on which the goods are sent.
3. In column 4, GSTIN of recipient of goods if it is applicable.
4. In column 5 name & address of the recipient of goods
5. In column 6-10 details of such goods like the HSN Code , the description of the goods, the unit for example Kgs/Mtr, the
quantity of goods transferred and finally the total value of goods sent.
FILING TRAN -2
Form TRAN 2 can be filed by a dealer/trader who has registered for GST, but was unregistered under the old regime. Such a
dealer who does not have a VAT or excise invoice for stocks held by them on 30th June 2017, can use TRAN -2 to claim tax credit
on the stock with them.
A manufacturer or service provider cannot file Form GST TRAN 2.
TRAN-2 has to be filed by a dealer or trader at the end of every month, when stock is sold reporting the details to claim input tax
credit. He must meet the following conditions
1. Such goods were not unconditionally exempt fully from excise/VAT or were not nil rated goods under Excise/VAT.
2. This scheme is operative only for 6 months from the 1st of July 2017 which means that the stock must be cleared by the end of
December to claim the credit.
3. You have a document that shows procurement of such goods.
4. The stock of goods on which the credit is being claimed is stored such that it can be easily identified.
Stock held with no supporting document showing payment of Excise Duty(Central Tax)
If you do not have a document showing the payment of Excise Duty , then you are supposed to fill the following details
Here you must give details of the Stock in the following manner:-
Specify the following in respect of every capital goods, invoice-wise details of:
Conditions to be fulfilled to claim credit of Central Tax and State tax- Applicable in case of
States offering Tax on MRP Scheme.
The central tax or state tax payable on such supply has been paid.
such goods were not wholly exempt from Excise Duty or Nil rated or under the relevant State VAT Act.
the document for procurement of such goods is available with the registered person.
furnish the details of stock held at the end of each of the 6 tax periods indicating therein the details of supplies of such goods
effected during the tax period in FORM TRAN-2
amount of credit allowed shall be credited to the Electronic Credit Ledger.
the stock of goods on which the credit is availed is so stored that it can be easily identified by the registered person.