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GST TRANSITION PROVISIONS & GST TRAN 1
CTC Indirect Tax Study Circle Meeting
25th July 2017
CA Shrenik A Shah
Partner – Ashwin K Shah & Co LLP
7, Chemox House, Barrack Lane, Mumbai - 400020
Mapping of Statutory Information
Relevant
Provisions of the
CGST/SGST Act
Relevant
Rule of the
CGST Rules
2017
Reference to
GST TRAN 1
Relevant for Goods / Services / Both Gist
140(1) 117(1) Pt.5(a), (b) & (c) Both Cenvat Credit & VAT / ET Credit carried
forward in the returns
140(4)(a) read with
section 140(1)
117(1) Pt.5(a), (b) & (c) Both Cenvat Credit & VAT / ET Credit carried
forward in the returns filed by an assessee
engaged in exempt and taxable supplies
under existing law
140(2) 117(1) &
(2)(a)
Pt.6(a) & (b) Capital Goods Unavailed Cenvat Credit/VAT/ET credit as
regards Capital Goods
140(3) 117(1) & 2(b) Pt.7(a) & (c) Goods held as inputs or as forming part of
any semi finished or finished goods &
supported by invoices or other tax paying
document
Eligible Cenvat / VAT Credit available on
inputs as such or as lying in the semi finished
or finished goods to a variety of assessees
not covered by 140(1)
140(4)(b) read with
section 140(3)
117(1) & 2(b) Pt.7(a) & (c) Goods held as inputs or as forming part of
any semi finished or finished goods &
supported by invoices or other tax paying
document
Eligible Cenvat / VAT Credit available on
inputs as such or as lying in the semi finished
or finished goods to an assessee engaged in
exempt and taxable supplies under existing
law
Mapping of Statutory Information
Relevant
Provisions of the
CGST/SGST Act
Relevant
Rule of the
CGST Rules
2017
Reference to
GST TRAN 1
Relevant for Goods / Services / Both Gist
140(6) 117(1) & 2(b) Pt.7(a) & (c) Goods held as inputs or as forming part of
any semi finished or finished goods &
supported by invoices or other tax paying
document
Eligible Cenvat & VAT Credit available on
inputs as such or as lying in the semi finished
or finished goods to assessees who are
paying tax at the fixed rate or fixed amount
Proviso to 140(3) 117(1), 2(b) &
(4)
Pt.7(b) & (c) Goods held as inputs or as forming part of
any semi finished or finished goods & not
supported by invoices or other tax paying
document
Rebate of CGST paid on supply of inputs as
such or as lying in the semi finished or
finished goods to a variety of assessees not
covered by 140(1)
140(4)(b) read with
Proviso to section
140(3)
117(1), 2(b) &
4
Pt.7(b) & (c) Goods held as inputs or as forming part of
any semi finished or finished goods &
supported by invoices or other tax paying
document
Rebate of CGST paid on supply of inputs as
such or as lying in the semi finished or
finished goods to an assessee engaged in
exempt and taxable supplies under existing
law
140(5) 117(1) & 2(c) Pt.7(b) Both Eligible Cenvat & VAT/ET credit in relation to
Supplies received after AD but taxes paid by
supplier prior to AD
140(7) NA NA Services Services received prior to AD & invoice
received after AD by an Input Service
Distributor
140(8) NA Pt.8 Services Carry Forward & Distribution of Cenvat
Credit by an assessee who has obtained
Centralised Registration
140(9) NA NA Services Cenvat Credit, once reversed on account of
non-payment, can be re-claimed once
payment is effected
Mapping of Statutory Information
Relevant
Provisions of the
CGST/SGST Act
Relevant
Rule of the
CGST Rules
2017
Reference to
GST TRAN 1
Relevant for Goods / Services / Both Gist
141(4) 119 Pt.9 Inputs, semi-finished or finished goods Details of Stocks of the Principal lying with
the job worker
142(1) NA NA Goods Credit adjustment on account of Goods
Return
142(2) NA NA Both Effects of debit notes and Credit notes for
supplies made prior to AD
142(3) NA NA Both Disposal on pending refund claims or claims
made under existing laws
142(4) NA NA Both Disposal of pending refund claims or claims
made under existing laws on account of
exports
142(5) NA NA Both Disposal of pending refund claims or claims
made under existing laws
142(6) NA NA Both Disposal of appeal, review & reference
under existing laws in connection with
Cenvat Credit
142(7) NA NA Both Disposal of appeal, review & reference
under existing laws in connection with
Output Liability
142(8) NA NA Both Disposal of assessment/adjudication under
existing law as regards tax, interest, penalty,
etc
142(9) NA NA Both Filing of revised returns that in effect give
rise to an additional tax liability or additional
tax refund
142(10) NA NA Both Supplies in connection with contracts
entered into prior to appointed day &
continued after AD
Mapping of Statutory Information
Relevant
Provisions of the
CGST/SGST Act
Relevant
Rule of the
CGST Rules
2017
Reference to
GST TRAN 1
Relevant for Goods / Services / Both Gist
142(11)(a) NA NA Goods Supplies liable to VAT only and have
suffered VAT will not be liable to GST
142(11)(b) NA NA Services Supplies liable to service tax only and have
suffered service tax will not be liable to GST
142(11)(c) 120 Section 11 Both Supplies liable to VAT & service tax will be
liable to GST to the extent of supplies
effected under GST
142(12) NA Section 12 Goods Goods sent on sale or approval within 6
months prior to AD & returned within 6
months from AD or the extended period of 2
months thereafter
142(13) NA NA Goods No TDS required under GST in respect of
payments made after AD for invoices raised
prior to AD coupled with sale of goods
effected prior to AD
142(14) – SGST
Act Only
119 of MGST
Rules
Pt.10 Goods held as inputs or as forming part of
any semi finished or finished goods or capital
goods
Entitlement of an agent to claim VAT / ET
credit as regards such goods belonging to
the Principal
Case Study 1
• Testing admissibility of available Cenvat Credit u/s.140(1)
Whether it is required to test the admissibility under GST law of validly availed Cenvat under existing law
How does one map the cenvat credit as on 30.6.2017 to the probable admissible credits – it seems once the credit is validy
availed it should not be put under the scanner
As regards control samples – Bar under section 17(5)(f) does not seem to apply to control samples
As regards food/beverages or renovation activity – As such should be disallowed while testing admissibility
• As regards C/H/F/I forms - The intention of 1st Proviso of Section 140(1) of MGST Act only refers to credit attributable to such
forms and does not seem to indicate fresh payment for pending forms. In that light, even though arithmetically there may be
a negative balance but it may at best be indicative of NIL credit carry forward
• Stocks with unregistered job worker - Section 141(4) seems to provide transitional benefits as regards stocks lying with job
worker only where the job worker also confirms the holding of such stocks
• Section 142(3) & (4) provide for disposal of refund claims made on or after AD in relation to the existing law – The assessee
has the right to either withdraw its refund claim or get it processed under exiting law. It runs of the claim lapsing in case of an
adverse view. One will have to visit the concept of re-credit where sout moto credit of the earlier reversed credit is allowable.
In that light question of lapsing may not arise. Reference can be made to ICMC Corporation Ltd Vs.CESTAT (2014) 302
ELT 45, Madras High Court decision.
• Section 140(2) – Cenvat Credit on capital goods will be allowable if the said credit is allowable under GST & existing law. In
the case of Carpet tiles they do not qualify as capital goods under CCR Rule 2(a) or as inputs under Rule 2(k). The credit will
not be available even if for any reason the goods qualify the test u/s.17(5)(d)
Case Study 2
• Section 140(3) - Person not liable to obtain registration under existing law – As regards export of services, the said services
are not required to be included in the aggregate value of turnover for availing threshold based exemption. Section 66B under
FA 1994 deals with tax on services rendered in taxable territory. Rule 2(e) excludes exported services from the definition of
exempted services. In that light liability to register would not arise.
• The activity seems to be that of a job worker. Whether admissibility of the inputs will warrant the visiting of provisions of Rule
53(6) of MVAT Rules. The said Rule seeks to disallow VAT credit on purchases made for use in the course of job work
services. There is no need to test the admissibility under existing law as per section 140(3). Hence, should be allowable
credit under GST.
• Section 140(3) deals with eligible cenvat credit as regards inputs or inputs contained in finished or semi finished goods held
in stock. Service tax & KKC does not form part of allowable eligible Cenvat Credit under Explanation 1 of Section 140.
Hence, will not be eligible Cenvat Credit. The question is whether the client can take registration for service tax on 10th July
2017 & make the claims in his ST3 returns & thereby make the claim for transition under Section 140(1) instead of 140(3).
• Proviso to Rule 53(6)(b) of MVAT Rules does not allow VAT credit for capital goods used for job work even in case of
manufacturers where such person is principally engaged in job work. Hence the VAT credit is not available under existing
law. This will disqualify VAT credit under 140(2).
• The capital goods will qualify for credit under GST for the purpose of Cenvat Credit. It will have to be looked at as to whether
the same will qualify as such under CCR 2004.
Case Study 3
• The firm is staring at an anti-profiteering issue at the outset. Where the assessee is unable to explain the rational of the price
rise, it will have to face consequences like forced reduction in prices, refund of excess to consumer, imposition of penalties &
cancellation of registration.
• There are no remedies or safeguards under the transitional provisions for sale price amendments done prior to 30.6.2017.
• As regards Cenvat Credit on capital goods used exclusively for the purpose of exempt goods under existing law – Rule 6(4)
of CCR will have to be taken into account for deciding the admissibility of this credit.
Case Study 4
• Provisions of Section 142(12) deals with goods sent on ‘sale or approval basis’ within 6 months from 30.6.2017• As regards the approval within 6 months – it will be treated as a supply under GST & the supplier will have to raise an
invoice accordingly
• As regards returns within 6 months – No GST since the returns are within 6 months. This is not a case of sales returns
covered by proviso to Section 142(1)
• As regards returns within 8 months – No GST if the extension has been sought from the Commissioner since the returns are
beyond 6 months. This is not a case of sales returns covered by proviso to Section 142(1)
• As regards returns beyond the prescribed time – GST will be payable by the person returning the goods as if it were supply
under GST
• If the supplier did not obtain registration – the issue would be around 2nd Proviso to Section 142(12) since the person
returning the goods will not levy GST as envisaged. Should one then resort to 3rd Proviso of Section 142(12) where the
liability to pay GST is on the person supplying the goods in the first place. This can be resorted to only if one deems that the
goods were not returned within prescribed period.
• As regards goods sent on approval basis before 6 months from appointed day – The benefit of transitional provisions
u/s.142(12) will not be available
Case Study 5
• As per Service Tax Rules 1994 billing can be done u/r.4A of the Rules within 30 days of completion of the service – The
point of taxation will be the date of issuance of invoice as per POT Rule 3 – Provisions of 142(11)(b) refers to cases where
the levy of service tax crystallises under the FA 1994 will not be liable to GST – In this case the issuance of invoice is within
prescribed time - The only apprehension is around the administrative & compliance issues and the manner in which the
recipient will claim cenvat credit of the service tax on the invoice.
• Credit note issued for cancellation of the invoice u/s.142(2)(b) will amount to having made a supply under GST & will
accordingly be liable to reversal at the applicable GST rate. The reduction in tax liability on outward supply will have to be
correspondingly confirmed by the concerned customer as well. This will not be a reason to revise the return already filed.
• The assessee can revise its return and make the necessary claim in its revised return. The problem is around c/f of the
excess ITC in the ST3 u/s.140(1). Even if such return is revised within prescribed time and before filing GST TRAN 1 form,
the assessee will not be allowed to carry forward such excess credit to GST but will have to claim a refund under existing law
in accordance with Section 142(9)(b). The enhancement in credit is not covered by the 30 day prescription under section
140(5) since the services were rendered prior to 30.6.2017.
• The point of taxation in the case of RCM service tax is mapped to the date of payment for the services. The POTR in the
present case is beyond AD but the tax is in fact leviable under section 68(2) of FA 1994. Service tax under RCM will be
available as credit under GST. The only apprehension is around the administrative & compliance issues since the transition
provisions make no specific provision for this. Correspondingly Form GST TRAN 1 also makes no such provision.
Case Study 6
• Section 140(3) deals with eligible credit of cenvat in connection with inputs and inputs contained in semi finished goods held
in stock by a works contractor. There is no reason to disallow credit in connection with the inputs in the case of works
contractor. The issue may come up as regards WIP since a view can be taken that it is not inputs or semi-finished goods. As
such it seems inputs contained in semi finished goods should take into account WIP
• As regards a situation of a builder/developer – Point is whether a works contractor and a builder can be differentiated under
GST any more – As such if one looks at the list of eligible persons under 140(3), it seems builder does not fit in any where
since he is not works contractor paying service tax under notification 26/2012 under existing law – Case of Suresh Kumar
Bansal, Delhi High Court, 43 STR, led to retrospective amendment to Rule 2A of Service Tax (Determination of Value) Rules
since levy fails where the computation mechanism is missing – Works contractor pay tax under Rule 2A & not 26/2012 –Should we read the AND as an OR – If yes, the credit of the stocks just like a works contractor should be available
• The issue of whether WIP can be treated as semi-finished GOODS is also a question
• Credit notes issued amounting to reversal post AD will be covered by 142(2)(b) & proviso thereof – this provision will
certainly not cover situations of builder/developer v/s. their customers since it refers to reversal of corresponding GST by the
registered person
• Whether cancellation of flat can amount to goods returns – Section 142(1) – The provision clearly hasn’t factored that as a possibility – Whether cancellation of the flat is a transitional issue at all?
• Section 58(4)(c) - Refers to refund of tax paid for supplies that are not provided wholly or partially – This seems to be the
only option
Case Study 7
• Rule 6(3A) read with Rule 6(3) of CCR provides for reversal of credits on provisional basis in the currency of the year and
then make a final self assessment at the end of the year. Provided this is done prior to filing of the last service tax return &
ideally prior to 30th June 2017, the assessee should be able make the necessary correction.
Case Study 8
• Discussion around the factors for claiming credit proviso to section 140(3)
• Rebate after effecting supply under GST
• Benefit of Rebate to be passed on to the customer
• Stocks covered by this option to be stored in a manner that they are separately identifiable
• The stocks in this regard must be exhausted in 6 tax periods
• Whether one needs to pass on the rebate benefit - Yes
• How does one tackle assessments to prove that the factors were met – Prudence and Due Diligence
• Additional Compliance in GST TRAN 2
Case Study 9
• For cases eligible for cash basis payment of service tax – For receipts beyond 30.6.2017 the levy will not be altered. The
concern will be liable to pay service tax. The transitional provisions are silent on this matter. Section 142(11)(c) is very clear
that were a levy was invited under FA 1994 no levy can fixed under GST. The mode and manner of complying with this & the
related ITC issues for the recipient need clarification.
• The firm is required to migrate and then finally de-register since it is an assessee registered as on the AD
GST TRAN -1
A Quick Overview
Why GST TRAN 1
• Essentially a medium to electronically communicate the key parameters of claiming credits & to provide for coverage in
relation to future contingencies as regards closing stocks held as on 30.6.2017 or supplied prior to AD
• A medium to populate GST PMT 2 (Electronic Credit Ledger)
• A basis for assessment & adjudication down the road for claims made in the transition phase
Coverage of GST TRAN 1
• The Form covers matters relating to Input Tax Credit pertaining to the erstwhile regime to be claimed in the GST regime.
• The Form logs information relating to stocks of inputs and inputs contained in finished or semi-finished goods lying with third
parties.
• The Form requires providing of information relating to on-going contracts that are liable to VAT & Service Tax till 30.6.2017.
• The Form is a common form for claiming State Tax & Central Tax credits.
• The Form has not been designed to provide information relating to each and every of the probable transactions &
circumstances as provided for by Section 139 to 142 of Acts.
Recommended process of filing GST TRAN 1
• Map the transaction or scenario to the relevant provisions of Section 139 to 142
• Visit the provisions of the existing law & GST law to fulfill necessary conditions as prescribed
• Collect data to be presented in GST TRAN 1 form where it is required so to do
• File GST TRAN 1 by 30th September 2017 or an extended period as may be prescribed
• Ensure that the requisite SGST & CGST credit are properly reflected in GST PMT 2
• As such it seems GST TRAN 1 can be filed in parts as well but the integrity check of the information filled in will have to be
kept in sight
• There is no bare provision relating to revision of GST TRAN 1 once it is so filed
• As a good practice one may want to keep a log of transactions or scenarios covered by the transition provisions but are not
required to be presented in GST TRAN 1 form
GST TRAN -1
Section 5(a)
5(a) Amount of Cenvat credit carried forward to electronic credit ledger as central tax (Section 140(1) and Section 140(4)(a))
Sl. No. Registration No. under
existing law (Central Excise
and Service Tax)
Tax period to which the last
return filed under the
existing law pertains
Date of filing
of the return
specified in
Column No.3
Balance cenvat credit
carried forward in the said
last return
Cenvat Credit admissible as
ITC of central tax in
accordance with transitional
provisions
1 2 3 4 5 6
Total
• The Section covers Cenvat Credits carried forward in the service tax returns & central excise returns filed
• The Cenvat Credit is the credit that is being carried forward in the last of such returns with the period thereof ending on
30.6.2017
• The assessee is not expected to provide invoice wise or HSN wise details
• Evaluating the admissibility of credits can be a tricky proposition
• The provisions of Rule 117(1) of the CGST Rules seem to suggest that the credits will be restricted to Eligible Credits as
referred to in Explanation 2 to Section 140 of CGST Act. One should stick to how Cenvat Credit u/r.3 of CCR 2004 defines
Cenvat. The Rules cannot go beyond the intention of the Act.
• KKC credit as such allowed to only service providers & SAD credit is allowed only to manufacturers. There does not seem
to be a bar in making the said claims under the transitional provisions under 140(1)/140(4)(a)
• The credits reported in this section will appear as CGST credit in GST PMT - 2
GST TRAN -1
Section 5(b) & 5(c)
• This section deals with VAT / ET Credits carried forward in the last return filed for the period ended on 30.6.2017
• The VAT/ET credit in this section will be treated as SGST credit in GST PMT-2 & is subject to differential tax liability arising on account of
non-receipt of statutory forms
• One will be required to provide issuer wise details of Forms Received in Section 5(b)
• Section 5(c) will require consolidated details of Forms that are not received as on the date of filing GST TRAN-1
• What is the basis of requiring the information from 1.4.15 to 30.6.17? There is no statutory basis in the Act or Rules
• What happens to Credits that were not carried forward in light of Section 50(2) of MVAT, why should one be liable to credit blockage on
account of forms pertaining to such period
• ITC relatable to the forms? How does one get around identifying relatable credit especially but not limited to the case of a manufacturer of
goods
• Forms Information to be given even if there are no pending forms as on the date of filing GST TRAN 1
• Formulae in column (7) & (10) ??? - The table at pt.5(c) seems to suggest in column 10 that the effective working may turn out negative
• The first proviso in the respective SGST Act seems clear to only block the credits and does not make reference to payment of differential tax
liabilities. In that light negative credit in column 10 will only be indicative it seems, not likely to impact working capital
• Does it make more sense to claim refund under VAT law by filing form 501 and get done with it
5(b) Details of statutory forms received for which credit is being carried forward
Period 1st April, 2015 to 30th June 2017
TIN of Issuer Name of Issuer Sr. No. of Form Amount Applicable VAT Rate
C-Form
Total
F-Form
Total
H/I-Form
Total
5(c) Amount of tax credit forward to electronic credit ledger as State/UT Tax (For all registrations on the same PAN and in the same State)
Registration
No. in exisiting
law
Balance of ITC
of VAT and
[Entry Tax] in
last return
C Forms F Forms ITC reversal
relatable to (3)
and (5)
H/I Forms Transition ITC
2-(4+6-7+9)Turnover for
which forms
Pending
Difference tax
payable on (3)
Turnover for
which forms
Pending
Tax Payable on
(5)
Turnover for
which forms
Pending
Tax payable on
(7)
1 2 3 4 5 6 7 8 9 10
GST TRAN -1
Section 6 (a) & (b)
• This section deals with Cenvat & VAT / ET Credits in relation to Capital Goods
• The said credits to the extent unavailed under the erstwhile regime can be claimed in the GST Regime
• Invoice wise details of such fixed assets with the Tax Registration numbers under existing law have to be provided
• Section 6(a) deals with Cenvat Credit & 6(b) deals with VAT/ET as regards such capital goods
• Effective ITC on Capital goods = Gross ITC – Ineligible ITC – ITC availed under existing law
• Service Tax, ED Cess and SHC are covered by Rule 3 of CCR 2004. For example if service tax is paid on installation of a machinery, it
should be allowable Cenvat Credit as regards the said capital goods. The headings at column (7) & (9) can be misguiding
• SAD Claim to Service Providers and KKC claims to Manufacturers are not allowed under existing law. The impact of this issue will have to
be factored while computing ineligible ITC
6(a) Amount of unavailed cenvt credit in respect of capital goods carried forward to electronic credit ledger as central tax
Sl. No. Invoice /
Documents
No.
Invoice /
Document
Date
Supplier's
registration
No. under
existing law
Recipients'
registration
No. under
existing law
Details of capital goods on which credit has
been partially availed
Total eligible
cenvat credit
under existing
law
Total cenvat
credit availed
under existing
law
Total cenvat
credit
unavailed
under existing
law
(admissible
as ITC of
centrtal tax)
(9-10)
Value Duties and taxes paid
ED / CVD SAD
1 2 3 4 5 6 7 8 9 10 11
Total
6(b) Amount of unavailed input tax credit carried forward to electronic credit ledger as State/UT tax
(For all registrations on the same PAN and in the same State)
Sl. No. Invoice /
Document
No.
Invoice /
Document
Date
Supplier's
registration
No. under
existing law
Recipients'
registration
No. under
existing law
Datails regarding capital
goods on which credit is not
availed
Total eligible
VAT [and ET]
credit under
existing law
Total VAT
[and ET]
credit availed
under existing
law
Total VAT [and ET] credit
unavailed under existing law
(admissible as ITC of
State/UT tax) (8-9)Value Taxes paid
VAT [and ET]
1 2 3 4 5 6 7 8 9 10
Total
GST TRAN -1
Section 7 (a)
• This section deals with ITC of Eligible Cenvat credits covered by Explanation 1 to Section 140 as forming part of inputs or inputs
contained in finished or semi-finished goods
• Part 7A deals with cases supported by invoices indicating duty payments and thereby covers Eligible Duties as regards inputs or
inputs contained in semi-finished or finished goods held in stock as on 30.6.2017. The ITC in this regard will appear as CGST credit
in GST PMT-2
• Part 7B deals with cases not supported by invoices showing duty payments in connection with inputs held in stock as on 30.9.2016
• Benefits of rebate of 40%/60% is limited to inputs and does not cover inputs contained in semi finished or finished goods since
manufacturers / service providers are not covered here. The requisite credit will be credited to the CGST credit ledger on effecting
supply of the stocks in GST regime. The information of such supplies to be provided in GST TRAN-2 over 6 tax periods. The benefit
of this provision will not be available to cases covered by 140(6)
• Invoice wise details of stocks is not required to be presented. Information has to be provided HSN wise. Moreover no tax details will
be covered for stocks covered by 7B.
• The form indicates that 6 digits of HSN are required. This seems incorrect in light of the rate notifications under the Central, State,
Integrated & UT tax. It seems incorrect also in light of notification 12/2017 providing for mentioning of HSNs on invoices.
• What happens to packing material used to pack goods by a trader? Can they be said to be inputs or inputs contained in semi finished
or finished goods?
7(a) Amount of duties and taxes on inputs claimed as credit excluding the credit claimed under Table 5(a) (under section 140(3), 140(4)(b) and
140(6))
Sl. No. Details of inputs held in stock or inputs contained in semi-finished goods held in stock
HSN (at 6 digit level) Unit Qty. Value Eligible Duties paid on such inputs
1 2 3 4 5 6
7A Where duty paid invoices are available
Inputs
Inputs contained in semi-finished and finished goods
7B Where duty paid invoices are not available (Applicable only for person other than manufacturer or service provider) - Credit in terms of Rule 117(4)
Inputs
GST TRAN -1
Section 7 (c) & (d)
• Section 7(c) deals with ITC of VAT/ET credits duly covered by invoices. The ITC in relation to this credit will appear as SGST credit
in GST PMT 2
• Section 7(d) deals with rebate benefits of 40% / 60% just like under Central Tax. Nevertheless, the benefit is restricted to State Tax
for States having one point levy of VAT. This matter refers to Rule 117(4) of CGST Rules
• Cases covered by Section 140(6) will not be able to avail the benefit of Rebate claim of 40% / 60%
• The requisite ITC covered by 7(d) will be credited to the CGST credit ledger on effecting supply of the stocks in GST regime. The
information of such supplies to be provided in GST TRAN-2 over 6 tax periods
• Information in Section 7(c) & (d) will have to be provided based on description of goods. It is advisable to map the HSN to the
description.
7(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 sections 140(3), 140(4)(b) and 140(6)
Details of inputs in stock Total input tax credit
claimed under earlier law
Total input tax credit
related to exempt sales not
claimed under earlier law
Total input tax credit
admissible as
SGST/UTGSTDescription Unit Qty. Value VAT[and
Entry Tax]
paid
1 2 3 4 5 6 7 8
Input
Inputs contained in semi-finished and finished goods
7(d) Stock of Goods not supported invoices/documents evidencing payment of tax (credit in terms of Rule 117(4) - to be there only for States
having VAT at single point )
Details of Inputs in Stock
Desciption Unit Qty Value Tax Paid
GST TRAN -1
Section 7 (b)
• This section deals with cases where the supplies are effected after 30.6.2017 but the invoices are pertaining to a date on or before
30.6.2017
• Invoice details will have to be presented
• Eligible duties in this case will cover duties as referred to in Explanation 2 to Section 140
• KKC is not covered as eligible duties & that must be borne in mind
• The date of entry in the books of the recepient has to be within 30 days of the date of invoice. This information is required in column
(10).
• Supplier TIN/Registration numbers have not been provided for in here
7(b) Amount of eligible duties and taxes/VAT/[ET] in respect of inputs or input services under section 140(5):
Name of the Supplier Invoice
number
Invoice Date Description Quantity UQC Vaule Eligible
duties and
taxes
VAT/[ET] Date on
which
entered in
recipients
books of
account
1 2 3 4 5 6 7 8 9 10
GST TRAN -1
Section 8
• This section deals with distribution of eligible cenvat credit c/f in the return filed for the period ended on 30.6.2017 by an assessee
(HO) who has obtained Centralised Regn. to any of the locations (Branch) covered by such registration
• The third proviso to Section 140(8) of CGST Act provides for transfer of credit with the HO to any of the branches who are registered
under GST
• The table at column (8 ) provides for the details of credit transferred & maps that to some invoice or document number
• Should the branches also file GST TRAN 1 to claim the credit but no provision to capture that information
• This can’t be done prior to 30.6.2017 unless the HO obtains ISD registration• Harmonious reading of the Act, Rules and the Form seem to suggest that the invoice for transfer of credit will have to be prepared
under GST. The sums shown as transferred will reflect in the respective GST PMT 2 of the branches since GSTIN details are
requisitioned
• The provisions of Rule 117(2) seem to suggest that stock details are required to be provided in relation to the credit carried forward
in the ST3 filed by such assessees. There is no question of stock details in so far as the claiming of Cenvat Credit c/f. in return is
concerned.
• The Form GST TRAN 1 makes no such provision
• The HO may have inputs that are entitled to the credit benefits of 140(3). This claim can be made in GST TRAN 1 form at pt.7. This
credit cannot be transferred to the branches as stated in proviso to Section 140(8) as it is not carried forward in the return
• Where HO does not transfer all the credits how does one ensure that the remaining credit is shown under Section 5(a) of the Form
8 Details of transfer of cenvat credit for registered person having centrailzed registration under existing law (Section 140(8))
Sl. No. Registration No.
under existing
law (Centralized)
Tax period to
which the last
return filed
under the
existing law
pertains
Date of filing
of the return
specified in
Column No.3
Balance
eligible cenvat
credit carried
forward in the
said last return
GSTIN of
receivers
(same PAN) of
ITC of
CENTRAL
TAX
Distribution document /
invoice
ITC of CENTRAL TAX
transferred
No. Date
1 2 3 4 5 6 7 8 9
Total
GST TRAN -1
Section 9
• This section deals with providing details of stock of inputs or semi finished goods or finished goods belonging to a Principal that are
lying at the premises of its job worker as on 30.6.2017
• Section 9(a) requires the Principal to provide chalan wise information of stocks lying with the job worker duly broken up into HSN
• The information has to be further broken up HSN wise that in turn can mean several line items for the same chalan or other such
document
• Section 9(b) requires a Job Worker to provide corroborative details to be map the details as provided by the Principal
• What if the job worker is unregistered how does he upload this information
• Where requirements of Section 9(b) are not fulfilled it seems that the goods will be deemed to have been supplied & liable to GST in
accordance with Section 141(4)
• Provision or otherwise of details under this section will not impact the entitlement of an assessee u/s.140(1) / (3)
9(a) Details of goods sent as principal to the job worker under section 141
Sl. No. Challan No. Challan Date Type of goods (inputs/
semi-finished / finished)
Details of goods with job-worker
HSN Description Unit Quantity Value
1 2 3 4 5 6 7 8 9
GSTIN of Job-worker, if available
Total
9(b) Details of goods held in stock as job worker on behalf of the principal under section 141
Sl. No. Challan No. Challan Date Type of goods (inputs/
semi-finished / finished)
Details of goods with job-worker
HSN Description Unit Quantity Value
1 2 3 4 5 6 7 8 9
GSTIN of Manufacturer
Total
GST TRAN -1
Section 11
• This Section deals with cases where the assessee is liable to VAT as well as Service Tax under the existing laws
• The provisions of Section 142(11)(c) seek to capture information relating to on going contracts to the extent of supplies made under the
GST regime
• One will have to provide for the invoices in relation to which supplies will take place post 30.6.2017 & thereby claim credit of the
VAT/Service tax paid against the GST payable
11 Details of credit availed in terms of Section 142(11)(c)
Sl. No. Registration No. of VAT Service Tax Registration
No.
Invoice /
Document
No.
Invoice /
Document
Date
Tax Paid VAT paid Taken as
SGST Credit or Service
Tax paid as Central Tax
Credit
1 2 3 4 5 6 7
GST TRAN -1
Section 12
• This Section deals with goods that have been sent out on ‘sale or approval basis’ within 6 months immediately preceding 30.6.2017
• It is not required to provide corroborative basis of stocks held by third parties unlike in the case of agent/principal or job worker/principal
situation
• The information has to be provided document wise that could be a chalan or any other document of a like nature
• The information has to be further broken up HSN wise that in turn can mean several line items for the same chalan or other such
document
12 Details of goods sent on approval basis six months prior to the appointed day (section 142(12))
Sl. No. Decument No. Document
Dte
GSTIN No.
of recipient,
(if
applicable)
Name & Address of
recipient
Details of goods sent on approval basis
HSN Description Unit Quantity Value
1 2 3 4 5 6 7 8 9 10
Total
GST TRAN -1
Some Misses
• The Form does not seem to cover issues covered by Section 140(9) relating to re-claim of cenvat credit in case of invoices where the
credit was reversed on account of non-payment of the said invoice under the existing law that are eligible to be claimed under GST on
payment on or before 30.9.2017
• Section 140(9) seems to pre-suppose the filing of return and that the person is registered
• Can one severe the relationship between 140(3) & 140(9) and 140(1) & 140(9) – must be read in light of Rule 4(7) & 4(1) of CCR 2004
• The Form makes no provision to provide for Cenvat Credit reversal details on account of this issue
• GSTR 2 Clause 11 may be used to capture details of reclaim
Thank You!