TRANSITIONAL PROVISIONS

Goods sent on approval basis PRESENTATION PLAN MIGRATION, CREDIT Job work Sales return Goods sent on approval basis PRICE REVISION, Miscellaneous

CHAPTER XX TRANSITIONAL PROVISIONS 139. Migration of existing taxpayers. 140. Transitional arrangements for ITC 141. Transitional provisions relating to job work. 142. Miscellaneous transitional provisions.

INPUT TAX CREDIT Carry forward of c/b credit Unavailed credit capital goods DUTY PAID STOCK INPUT TAX CREDIT Taxable plus Exempt earlier GOODS /SERVICES IN TRANSIT ISD Centralised Registration

JOB WORK GOODS RETURNED PRICE REVISION OLD P R O C E D U GOODS SENT ON APPROVAL BASIS. PRICE REVISION TDS deducted under VAT Goods or CG lying with the agent

139.Migration of existing tax Payer Any person registered  under any of the existing law and having PAN Provisional  registration . Final registration after submission of certain documents

INPUT TAX CREDIT TRANSITION

TRANSFER OF CREDIT UNDER EXCISE AND SERVICE TAX CREDIT OF EXCISE DUTY LAYING IN BALANCE INTO INPUT CREDIT LEDGER OF CGST BOTH CREDITS CAN BE CARRIED FORWARD CREDIT OF SERVICE TAX LAYING IN BALANCE Compounding dealers under Section 10 not eligible

TRANSFER OF CREDIT UNDER VAT INTO INPUT CREDIT LEDGER OF SGST CREDIT OF VAT DUTY LAYING IN BALANCE BOTH CREDITS CAN BE CARRIED FORWARD CREDIT OF ENTRY TAX LAYING IN BALANCE

Transitional arrangements for ITC WHAT HAPPENS TO MY UNAVAILED 50% CREDIT ON CAPITAL GOODS? YOU CAN TAKE CREDIT IN INPUT CREDIT LEDGER OF CGST CHEAR UP

Transitional arrangements for ITC MY GOODS WERE EXEMPTED EARLIER, BUT NOW TAXABLE UNDER GST, WILL I GET CREDIT OF TAX PAID ON STOCK LAYING WIT ME? YOU CAN TAKE CREDIT IN INPUT CREDIT LEDGER OF CGST/SGST OFCOURSE

Transitional arrangements for ITC MY GOODS ARE IN TRANSIT ON WHICH EXCISE /VAT IS PAID, WILL I GET CREDIT OF TAX PAID IF I RECEIVED GOODS AFTERR APPOINTED DAY? YOU CAN TAKE CREDIT IN INPUT CREDIT LEDGER OF CGST/SGST DON’T WORRY

Transitional arrangements for ITC I HAD TO TAKE FRESH REGISTRATION AS ISD. WHAT HAPPENS TO CREDIT RELATD TO INVOICES RECEIVED MENTIONING OLD REGISTRATION? YOU CAN TAKE CREDIT IN INPUT CREDIT LEDGER OF CGST/SGST ON SUCH INVOICES ALSO DON’T WORRY

Transitional arrangements for ITC Carry forward of c/b credit Unavailed credit on capital goods: Credit on goods lying in stock Taxable plus Exempt activity earlier Input/Input Services in transit ISD Centralised registration

FILE FORM GST TRANS-1 WITHIN 90 DAYS HOW TO GET THE CREDIT FILE FORM GST TRANS-1 WITHIN 90 DAYS RULE 1

CONDITIONS FOR TRANSITIONAL CREDIT CREDIT SHALL NOT BE ALLOWED IF Input credit is not Admissible under present act If all returns for previous six moths are not filed If credit related to exempted goods manufactured and cleared under Notification (CGST) Credit related to Capital goods is admissible under present and new ACT(CGST)

CONDITIONS FOR TRANSITIONAL CREDIT Input are used for taxable supply under this Act RP is entitle for input tax credit under this Act RP is in possession of Invoice or other duty payment documents Such Invoices not more than twelve months old. Supplier of services is not eligible for abatement under this Act.

Input /input services in transit Received on or after the appointed day but the duty or tax paid earlier RP may take credit of eligible duties and taxes   the invoice has been recorded in the books within 30 days from the appointed day. Extendable by 30 days by Commissioner furnish a statement ISD can also distribute such credit

Transitional arrangements for ITC I will get refund if substantiated AS PER rule 12 of the Central Sales Tax Rules, 1957 AM I GOING TO LOOSE THE CREDIT RELATED TO SECTION 3, 5(3), 6, 6A or 8(8) of the CST, Act Wait

Additional Condition for SGST VAT c/f credit relating to CST cases Provided further that so much of the said credit as is attributable to any claim related to Sections 3, 5(3), 6, 6A or 8(8) of the CST, Act, 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: The same shall be refunded under the existing law when the said claims are substantiated

Sections of the CST Act Particulars of the transaction Statutory Provisions Particulars of the transaction Section 3 Inter-state sale of goods from one state to another Section 5(3) Penultimate sale of goods preceding the export of those goods Section 6 In-transit sale, sale to officer, personnel, consular or diplomatic agent of any foreign diplomatic mission or United Nations or a similar body Section 6A Inter-state branch transfer, transfers between principal and agent, job-work transactions  

Form Description Frequency C Declaration by purchasing registered dealer to obtain goods at concessional rate To be obtained for every quarter and submitted on quarterly basis D Form of certificate for making government purchases) Abolished from 1 4-2007. E-I/E-II Certificates for sale in transit F Form by branch/consignment agent for goods received on stock transfer Monthly, but to be submitted to authorities quarterly G Indemnity bond when C form lost When required H Certificate of Export Upto the time of assessment by first assessing authority. I Certificate by SEZ unit Not specified in rules (but should be submitted before assessment). J Certificate to be issued by foreign diplomatic mission or consulate in India or the UN Agency

Who were not under VAT earlier A RP who was not liable to be registered under the existing law or engaged in the sale of exempted goods or tax free goods, or goods which have suffered tax at the first point of their sale in the State and the subsequent sales of which are not subject to tax where the person was entitled to the credit of input tax at the time of sale of goods, VAT credit on input on his stock

----Who were not under VAT earlier VAT credit on input on his stock on the appointed day admissible: subject to the following conditions . If the Input is used for taxable supply under this Act RP is entitle for input tax credit under this Act RP is in possession of Invoice or other duty payment documents Such Invoices were not more than twelve months old.

Transitional arrangements for ITC FOR SIX MONTHS I DON’T HAVE ANY INVOICES FOR THE STOCK AVAILBLE WITH ME. I WILL NOT GET CREDIT ON THE STOCK!!!! YOU CAN TAKE CREDIT IN INPUT CREDIT LEDGER OF CGST/SGST , 60% TO 40% OF THE GST PAID RELAX

FILE FORM GST TRANS-2 AT THE END OF EACH SIX TAX PERIOD HOW TO GET THE CREDIT FILE FORM GST TRANS-2 AT THE END OF EACH SIX TAX PERIOD RULE 1(4)

Not in possession of documents evidencing payment of VAT /CX duty Not in possession of documents evidencing payment of VAT /CX duty. INTRA STATE There is a Scheme for RP for six months Not available to manufacturer or supplier of service Credit @ 60% (IF CENTRAL/STATE TAX PAYBLE IS 9% OR MORE) 40% ( FOR THERES)of central/state tax applicable Conditions. Such goods were not exempt or nil rated Document of procurement is available with RP pass on the benefit of such credit by way of reduced prices. Submit statement of supply of such goods in each of six tax period. Stocks stored should be easily identifiable

Not in possession of documents evidencing payment of VAT /CX duty Not in possession of documents evidencing payment of VAT /CX duty. INTER STATE There is a Scheme for RP for six months Not available to manufacturer or supplier of service Credit @ 30%% (IF CENTRAL/STATE TAX PAYBLE IS 9% OR MORE) 20% ( FOR THERES)of central/state tax applicable Conditions. Such goods were not exempt or nil rated Document of procurement is available with RP pass on the benefit of such credit by way of reduced prices. Submit statement of supply of such goods in each of six tax period. Stocks stored should be easily identifiable

Earlier under Composition Scheme tax at fixed rate or paying fixed amount in lieu of tax payable under the existing law Earlier under Composition Scheme RP   is entitled to the credit on his input stock, semi finished   and finished stock on the appointed date . subject to the following conditions; Such Input stock used for taxable supply under this Act. RP is not covered under section 10 of this Act. RP is eligible for ITC under this Act. RP is in possession of such Invoice or other duty payment documents. Such Invoices are not more than twelve months old on appointed day

APPOINTED DAY OLD PROCEDURE GRACE PERIOD

Section 142 (10) : Supply under old contract GST payable on or after Appointed Day. Save as otherwise provided in this Chapter Save as otherwise provided in this Chapter, the goods or services or both supplied on or after the appointed day in pursuance of a contract entered into prior to the appointed day shall be liable to tax under the provisions of this Act

Service Tax/VAT already paid under existing law TRANSITION CASES Point of taxation under existing law arose before AD. (11) (a) notwithstanding anything contained in section 12, no tax shall be payable on goods under this Act to the extent the tax was leviable on the said goods under the VAT Act of the State; (b) notwithstanding anything contained in section 13, no tax shall be payable on services under this Act to the extent the tax was leviable on the said services under Chapter V of the Finance Act, 1994; (c) Tax shall be leviable under works contract to the extent of supply made after AD with credit entitlement

INPUT SEMI FINISHED FINISHED JOB WORK GST from AD. No Tax if returned within : 6 + 2 months ITC shall be liable to be recovered as per section 142(8)(a) Manufacturer may transfer the goods on payment of tax or export Manufacturer may transfer the goods to premises of a RP File declaration of stock in GST TRAN-1 held as principal, agent or branch

returned within 6 months Goods returned Removed Before 6 months Appointed day returned within 6 months Returned by a unregistered person : Refund Returned by a registered person : return of goods shall be treated as supply of goods

Goods sent on approval basis Removed Before 6 months Appointed day returned within 6 months No tax is payable by the returner. Commissioner may extend the period by 2 month. If returned after that, tax is payable if taxable under GST ( by the returner) If not returned , tax is payable by the person who sent the goods on approval basis.

TDS deducted in VAT Where a supplier has made any sale of goods TDS required under VAT Act and Invoice issued before the appointed day, where payment made on or after appointed day. No TDS under GST.

Price revision Upward price revision Contract entered before appointed day Upward price revision RP here will issue supplementary invoice or debit notes within 30 days from the date of revision. Such revision shall be treated as supply under this Act.  Downward Revision RP may issue credit  note within 30 days from such revision  and credit note shall be deemed to have been issued in respect of outward supply made under this Act. RP will reduce his tax liability for such credit note

Refund Claim PROCEEDINGS UNDER EXISTING LAW proceeding of appeal, review or reference Old return revised CENVAT credit Export Service tax CENVAT credit duty or tax adjudication Liability increased Decreased Demand or refund

RECOVERED AS ARREARS OF TAX RETURN REVISED RECOVERY REFUND IF REVISED IN TIME IN CASH RECOVERED AS ARREARS OF TAX

Refund of CENVAT credit under the existing law filed by RP before, on or after the appointed  date shall be disposed under the existing law to be paid in cash unjust enrichment If rejected , the credit shall lapse. no refund of CENVAT if carry forwarded.

Export related refund of duty under the existing law filed by RP after the appointed  date in respect of the goods or services exported before or after the appointed day shall be disposed under the existing law any claim for refund of CENVAT credit is fully or partially rejected, the amount so rejected shall lapse: no refund of CENVAT if carry forwarded.

Proceedings of appeal, review or reference relating to CENVAT output liability under the existing law Any amount becomes recoverable : the same shall be recovered as arrear of tax under this Act. Same in case of assessment or adjudication proceedings instituted, whether before, on or after the appointed day, under the existing law

SPECIFIC TO CGST OR SGST PROVISIONS SPECIFIC TO CGST OR SGST

Centralised Registration can take credit of the amount of CENVAT carry forward  in  return furnished under the existing law . If the original / revised return under the existing law has been filed within three months . such credit may be transferred to any of the registered persons having the same PAN for which the centralised registration was obtained.

Reclaim the reversed Input Service credit Cenvat reversed on account of non payment within three months. Can be reclaimed If payment made within 3 months from the Appointed Day

Agent shall be entitled to take credit Conditions: 14) Where any goods or capital goods belonging to the principal are lying at the premises of the agent on the AD Agent shall be entitled to take credit Conditions: the agent is a registered taxable person (ii) both the principal and the agent declare the details of stock (iii) the invoices not earlier than twelve months (iv) the principal has either reversed or not availed of the input tax credit SGST law only

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

(Section 140(1) and Section 140(4)(a)) Details of statutory forms received for which credit is being carried forward (Section 140(1) and Section 140(4)(a)) TIN of Issuer Name of Issuer Sr. No. of Form Amount Applicable VAT   Rate C-Form Total F-Form H/I-Form

Amount of tax credit carried forward to electronic credit ledger as State/UT Tax(For all registrations on the same PAN and in the same State) (Section 140(1) and Section 140(4)(a))   Registration No. in existing law Balance of ITC of VAT and [Entry Tax] in last return C Forms F Forms   H/I Forms Transition ITC 2- (4+6-7+9)  Turnover for which forms Pending Difference tax payable on (3)  ITC reversal relatable to [(3) and] (5) Turnover for which forms Tax payable on (7) Turnover for on (5) 1 2 3 4 5 6 7 8 9 10

Amount of unavailed cenvat credit in respect of capital goods carried forward to electronic credit ledger as central tax Section 140 (2) Sr. no   Invoice / Document no. Invoice / document Date Supplier’s registration no. under existing law Recipients’ Details of capital  goods on which credit has been partially  availed Total eligible cenvat credit under existing Total cenvat credit availed credit unavailed under existing law (admissible as ITC of central tax) (9-10) Value Duties and taxes paid ED/ SAD CVD 1 2 3 4 5 6 7 8 9 10 11 Total

(For all registrations on the same PAN and in the same State) Amount of unavailed input tax credit carried forward to electronic credit ledger as State/UT tax Section 140 (2) (For all registrations on the same PAN and in the same State) Sr. Invoice/ Supplier’s Recipients’ Details regarding capital Total eligible Total VAT [and Total VAT [and ET] no Docu docume registration registration no. goods on which credit is VAT [and ET] ET] credit availed credit unavailed under   ment nt no. under under existing not availed credit under under existing law existing law no. Date existing law Value Taxes paid (admissible as ITC of State/UT tax) (8-9) 1 2 3 4 5 6 7 8 9 10 Total

Eligible Duties paid on such inputs Amount of duties and taxes on inputs claimed as credit excluding the credit claimed under Table 5(a) and 7(a) Section 140(3), 140 (4)(b) & 140 (6) Sr. no. Details of inputs held in stock or inputs contained in semi-finished or 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 or any other document 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 1 (4)

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 Section 140(3), 140 (4)(b) & 140 (6)   Details of inputs in stock Total input tax Total input tax credit Total Input tax credit Description Unit Qty Value VAT [and Entry Tax] paid credit claimed related to exempt sales not admissible as under earlier law claimed under earlier law SGST/UTGST 1 2 3 4 5 6 7 8 Inputs Inputs contained in semi-finished and finished goods (c) Stock of goods not supported by invoices/documents evidencing payment of tax (credit in terms of rule 1 (4)) (To be there only in States having VAT at single point) Tax paid

Details of transfer of cenvat credit for registered person having centralized registration under existing law (Section 140(8)) Sl. No. Registration no. Tax period to Date of filing Balance eligible GSTIN of receivers Distribution docume ITC of   under existing which the last of the return cenvat credit (same PAN) of ITC /invoice CENTRAL TAX law return filed under specified in carried forward transferred No. Date (Centralized) the existing law Column no. 3 in the said last pertains return 1 2 3 4 5 6 7 8 9 Total

Details of goods sent as principal to the job worker under section 141 Sr. Challan Type of goods   Details of goods with job- worker No. date (inputs/ semi-finished/ finished) HSN Description Unit Quantity Value 1 2 3 4 7 8 9 10 11 GSTIN of Job Worker, if availabl Total Details of goods held in stock as job worker on behalf of the principal under section 141 Sr. No. Challan Type of goods   Details of goods with job- worker No. Date (inputs/ semi-finished/ finished) HSN Description Unit Quantity Value 1 2 3 4 7 8 9 10 11 GSTIN of Manufacturer Total

Details of goods held by the agent Section 142 (14) Details of goods held as agent on behalf of the principal Section 142 (14) Sr. GSTIN of Principal   Details of goods with Agent No. Description Unit Quantity Value Input Tax to be take 1 2 3 4 5 6 Details of goods held by the agent Section 142 (14) Sr. GSTIN of Principal   Details of goods with Agent No. Description Unit Quantity Value Input Tax to be take 1 2 3 4 5 6

Details of credit availed in terms of Section 142 (11 (c )) Contract prior supply latter Sr. no Registration No of Service Tax Invoice/doc Invoice/ Tax Paid VAT paid Taken as SGST Credit   VAT Registration No. ument no. document date or Service Tax paid as Central Tax Credit 1 2 3 4 5 6 7 Total Details of goods sent on approval basis six months prior to the appointed day (section 142(12)) Sr Document GSTIN no. of Name &   Details of goods sent on approval basis No. no. date recipient, (if address of HSN Description Unit Quantity Value applicable) recipient 1 2 3 4 5 6 7 8 9 10 Total

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