GST Trans-1

Transitional Credit Section 140(1) – ITC as per returns A registered person, (other than composition dealer) Carry forward CC as per the return of 30 June, furnished under existing law VAT / ET as per the return of 30 June, furnished within 90 days from 1 July 2017.

Transitional Credit Conditions Section 140(1) – ITC as per returns Conditions Credit should also be admissible as ITC under the CGST / SGST; and Furnished all the returns required under the existing law For the period of 6 months preceding 1 July 2017; and The CC should not relate to finished goods already cleared under existing law under certain exemption notification to be specified.

Transitional Credit Rule 117(1) of WBSGST Rule, 2017 in context of Section 140(1) of SGST Act, 2017 A declaration electronically in FORM GST TRAN-1, duly signed Within 90 days from 1 July 2017 Specifying therein, separately, the amount of ITC Value / Value of declarations of claims under various Forms of the State Serial No of forms

To be filed to claim ITC on To be filed by Remarks Those taxes which are shown as carried forward in the last return filed. This Part is to be filed in respect of only those taxes for which the dealer is registered under existing laws. (eg. VAT/Excise/Service Tax etc.) All Persons registered under GST (EXCEPT Composition dealers under GST laws.) This Part is NOT to be filed in respect of unavailed tax credit of Capital Goods which is not shown in last return filed. (Use Part‐B for this)

Amount of tax credit carried forward in the return filed under existing laws: Amount of CENVAT credit c/f to e-credit ledger as central tax (Section 140(1) and Section 140(4)(a))

Details of statutory forms received for which credit is being carried forward Period: 1st Apr 2015 to 30th June 2017

(c) Amount of tax credit c/f to e-credit ledger as State/UT Tax(For all registrations on the same PAN and in the same State) VAT/ET registration

Transitional Issues Section 140(2) – Capital Goods A registered person, (other than composition dealer) take, unavailed CC/IC, not carried forward as per the last return Condition CC/IC was admissible under the existing law; and Also admissible as ITC under this Act. Rule 2 of TR Specify separately the particulars in respect of every item of capital goods.

To be filed to claim ITC on To be filed by Remarks This Part is to be filed in respect of unavailed tax credit of Capital Goods which is not claimed in last return filed. All Persons registered under GST (EXCEPT Composition dealers under GST laws.) This Part is to be filed in respect of only those taxes for which the dealer is registered under existing laws. (eg. Excise/Service Tax/VAT etc.)

Transitional Issues Section 140(3) – Inputs in Stock Eligible persons - A registered person, who was not liable to be registered under the existing law; or who was engaged in the manufacture of exempted goods; or who was engaged in the sale of EG / tax free goods under the existing law but which are liable to tax under this Act; or entitled to the credit of input tax at the time of sale of goods; or who was engaged in the provision of exempted services; or who was providing WCS and was availing Noti 26/2012; or a FSD; or a SSD; or a registered importer; or a depot of a manufacturer.

Transitional Issues Inputs held in stock and Section 140(3) – Inputs in Stock Inputs held in stock and Inputs contained in semi-finished or Inputs contained in finished goods

Transitional Issues Section 140(3) – Inputs in Stock Credit of eligible duties/taxes in respect of stock of as on 1 July 2017 AED (GSI) Act, 1957 CVD under 3(1); CVD under 3(5); AED (TTA) BED SED VAT ET

Transitional Issues Conditions - General Section 140(3) – Inputs in Stock Conditions - General Inputs / Goods should be used for taxable supplies; Registered person is eligible for ITC on such inputs under GST; Possession of Inv / other documents evidencing payment of duty/tax; Such Inv / other documents were issued within 12 months prior to 1 July 2017; and The supplier of services is not eligible for any abatement under GST.

Output tax of sale of goods under GST Transitional Issues Section 140(3) – Inputs in Stock Deemed credit in respect of inputs where duty paying document is not available in case of a dealer Sl. No Output tax of sale of goods under GST Deemed credit On GSTN 1 ≥ 9% CGST 60% of the CGST After CGST has been paid 2 < 9% of CGST 40% of the CGST 3 ≥ 9% IGST 30% of the IGST After IGST has been paid 4 < 9% of IGST 20% of the IGST 5 Similar deemed ITC where VAT was paid at first point on inputs.

Transitional Issues Conditions – Deemed Credit Section 140(3) – Inputs in Stock Conditions – Deemed Credit The dealer was not registered under existing laws; BED / CVD 3(1) should be leviable on the Inputs or The Inputs should have suffered VAT at first point; Should not be Exempt / Nil rated; Purchase document is available; Scheme is operative till 31 December 2017; Statement in FORM GST TRAN 2 at the end of each of the six tax periods; Inputs are so stored that it can be easily identified; Deemed credit shall be subject to anti profiteering clause.

To be filed to claim ITC on To be filed by Remarks This Part is to be filed all by Persons registered under GST laws, who were: **not liable to be registered under the existing law; or **exclusively engaged in the manufacture of exempted goods ; or **exclusively engaged in the provision of exempted services; or. **providing works contract service and was availing of the benefit of service tax notification No. 26/2012; or**first stage dealer; or **second stage dealer; or **registered importer; or **depot of a manufacturer; or **exclusively engaged in the supply of exempted goods (SGST Act) i.e. persons who were not eligible to claim ITC in respect of their inputs under one or the other existing laws .

Details of Credit to be claimed on input/input services received on or after 1st July’ 2017 but the duty/tax was paid by the supplier as per existing law.

Transitional Issues But liable to GST A registered person Section 140(4) – Exempted becomes taxable under GST A registered person Engaged in manufacture or EG and TG; or But liable to GST Engaged in provision of ES and TS Take ITC Of CC as reflected in the return in terms of section 140(1) for TG/TS; CC of inputs in stock / in semi-finished or in finished goods in stock on 1.7.2017 relating to such EG / ES, as per section 140(3).

Transitional Issues in stock on 1.7.2017 Section 140(6) – Composition scheme to Regular scheme A registered person, who was either paying tax at a fixed rate or a fixed amount take, credit of eligible duties in respect of inputs held in stock and inputs contained in semi-finished or inputs contained in finished goods in stock on 1.7.2017 Statement to be furnished containing the prescribed details

Transitional Issues Conditions Rule 117(4)(a) of WB SGST Rules, 2017: A registered person, holding stock of 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 in the State availing credit in accordance with the proviso to section 140 (3) shall be allowed to avail ITC on goods held in stock on the appointed day in respect of which he is not in possession of any document evidencing payment of VAT. Conditions (b) Such credit of State tax shall be availed subject to satisfying the following conditions, namely:- such goods were not wholly exempt from tax under the West Bengal Value Added Tax Act, 2003; the document for procurement of such goods is available with the registered person; the registered person availing of this scheme and having furnished the details of stock held by him in accordance with the provisions of clause (b) of sub-rule (2) of rule 1, submits a statement in

Details of Credit of tax to be claimed on input which had suffered single point VAT.

Transitional Issues existing law Centralised registration Section 140(8) – Centralised registration under existing law existing law Centralised registration Carry forward CC as per the return of 30 June, furnished under existing law CC is admissible as ITC under this Act. Such ITC may be transferred to any of the registered persons having the same PAN for which the centralised registration was obtained under the existing law.

Transitional Issues Section 140(8) – Centralised registration under existing law Condition Return upto 30.6.2017 if filed by 30.9.2017; Return is either an original return or a revised return where the credit has been reduced from that claimed earlier; The credit has been reduced from that claimed earlier.

To be filed to claim ITC on To be filed by Remarks Cenvat Credit by person having Centralised registration Who are claiming Cenvat credit held under centralised registration of existing laws as on the appointed day.

Transitional Issues Tax was paid on any supply Both under VAT and ST, Section 142(11)(c)– Progressive or periodic supply of goods or services Tax was paid on any supply Both under VAT and ST, Tax shall be leviable under GST to the extent of supplies made after 1.7.2017 AND The taxable person shall be entitled to take credit of VAT/ ST paid under the existing law and such credit shall be calculated in such manner as may be prescribed. Within 3 months from the date of IBC in terms of CCR 4(7)

To be filed to claim ITC on To be filed by Remarks Tax paid on advance received for Composite Supply under existing law. (Only VAT + Service Tax) To be filed by supplier of Goods AND Services

To be filed to claim ITC on To be filed by Remarks Statement of goods including Capital goods lying with job worker as on appointed day. To be filed by both Principal and Jobworker.

To be filed to claim ITC on To be filed by Remarks Statement of goods including Capital goods lying with agent as on appointed day. (only SGST) To be filed by both Principal and Agent

To be filed to claim ITC on To be filed by Remarks Statement of goods including Capital goods lying with agent as on appointed day. (only SGST) To be filed by both Principal and Agent

To be filed to claim ITC on To be filed by Remarks Goods sent on approval or return as on appointed day. To be filed by supplier of Goods

Thank you CA. P.D. RUNGTA M.Com., LL.B., ACMA., FCA., DISA(ICAI) Corporate Consultants (P) Ltd Email- pdrungta@gmail.com Contact No.- 98310 07253