1. ACAE Chartered Accountants’ Study Circle-EIRC
20th June, 2017
ACAE Chartered Accountants’ Study Circle-EIRC
CA D.S.Agarwala

2. Transitional Provisions
Existing Taxpayers
Input Tax Credit
Job Work
Miscellaneous

3. Migration of Existing Taxpayers- Sec 139
Every person registered under an existing law and having PAN
Other than Tax deductor or an ISD
Enrolment, Validation
Upon enrolment, Provisional Registration with GSTIN- REG-25

4. Migration of Existing Taxpayers- Sec 139
Application in REG-26 along with information/documents
Information/Documents within 3 months or such further period as may be specified
If O.k , Final Certificate in REG-6
If not, SCN in REG-27, hearing, if satisfied, SCN vacated-Order in REG 20, If not , Cancellation order in REG-28

5. Migration of Existing Taxpayers- Sec 139
Cancellation application by a person to whom provisional registration granted and who is not liable to be registered under GST- REG 29 within 30 days from AD
Multiple registration under existing law on the basis of single PAN: One Provisional registration in one state for a single PAN under GST
In case of Centralised Registration, one provisional registration in the state/UT where registered at present

6. TP- Input Tax Credit- Sec 140
Cenvat credit c/f in the return- Sec 140(1)
Unavailed CC on CG not c/f in the return- Sec 140(2)
Credit of eligible duties on Inputs held in stock on the appointed day- Sec 140(3)
Manufacture/service provider-Both taxable and exempted goods/services- Sec 140(4)

7. TP- Input Tax Credit
CC on services received by an ISD prior to appointed day-Sec 140(7)
Centralised Registration under existing law-Sec 140(8)
Credit of eligible duties/taxes on Input/Input services-In transit cases- Sec 140(5)
RP paying tax at fixed rate or fixed amount in lieu of tax payable under existing law- Sec 140(6)

8. TP- Input Tax Credit
Reclaim of CC on input services which was reversed due to non-payment-Sec 140(9)

9. General Condition for availing ITC u/s 140: [Rule 1 of TP Rules]
Submission of declaration
Within 90 days of AD
Further extendable for 90 days
Separate details of ITC
Form No.
GST TRAN-1

10. TP- Input Tax Credit 140(1)- CC carried forward in the return
Who is entitled to take?
Where this credit is to be taken?
What amount is to be taken?
Return related to which period?
Whether Credit can be taken only on input or on input services and capital goods as well?

11. CC carried forward in Return-Conditions for allowability
Admissible as ITC under GST
Furnished all returns required under existing law for the period of 6 months prior to appointed date
Credit does not relate to goods manufactured and cleared under exemption notification as may be notified

12. CC carried forward in Return-Conditions for allowability
Under WB GST, Ordinance, 2017, VAT credit shall not relate to goods in respect of which any assistance or incentive is payable including refund of VAT under any notification or resolution or memorandum as may be notified

13. TP- Input Tax Credit
140(2)-Unavailed Cenvat credit on capital goods not carried forward in the return
Meaning of ‘Unavailed Cenvat Credit’
Who is entitled to take?
Where this credit to be taken?
What amount is to be taken?
Return related to which period?

14. Unavailed CC on Capital Goods-Conditions for allowability
Admissible both under existing law and GST
Separate details of every item of capital goods in GST TRAN-1 containing
Amount of tax or duty under each of the existing law till the appointed day
availed or utilised
Not yet availed or utilised

15. Credit of Eligible duties on stock held in stock on appointed day
RP paying tax at fixed rate or fixed amount in lieu of tax payable under existing law- Sec 140(6)
Manufacturer of exempted goods/Service provider of exempted services u/s 140(4)
8 category of persons u/s 140(3)

16. TP- Input Tax Credit
140(3)- Credit of eligible duties on inputs held in stock on the appointed day
Meaning of ‘Eligible Duties’
ADE, SAD/CVD, CE-I & II Schedule of CETA, NCCD

17. Persons eligible to take credit of eligible duties -140(3) of CGST Act
Person not liable to be registered under existing law; or
Manufacturer of exempted goods ; or
Provider of exempted services; or
Works Contract service provider availing benefit of N. No. 26/2012

18. Persons eligible to take credit of eligible duties- 140(3) of CGST Act
First Stage Dealer; or
Second Stage Dealer; or
Registered Importer; or
Depot of a Manufacturer

19. Persons eligible to take credit of VAT-Sec 140(3) of WB GST Ordinance, 2017
Person not liable to be registered under existing law; or
Engaged in sale of exempted goods or tax-free goods; or
Engaged in sale of goods which have suffered first point tax; subsequent sales not taxable under existing law but taxable under GST

20. Persons eligible to take credit of VAT-Sec 140(3) of SGST Act
Was entitled to the credit of input tax at the time of sale, if any

21. Conditions for taking credit u/s 140(3) of CGST & WB Ordinance, 2017
Inputs/goods used/intended to be used for making taxable supplies under GST
RP eligible for ITC on such inputs under GST
Possession of invoice or other prescribed documents evidencing duty/tax payment under existing law on such inputs

22. Conditions for taking credit u/s 140(3) of CGST & WB Ordinance, 2017
Such invoice/prescribed docs issued not earlier than 12 months immediately preceding appointed day
Supplier of services not eligible for any abatement under GST [In CGST Act]

23. Exception to the condition of Possession of invoice
CGST
RP not regd. under existing law
Other than a manufacturer or supplier of services
SGST
RP holding stock suffered first point tax in the state
Subsequent sale not taxable in the state

24. Exception to the condition of Possession of invoice
How much credit shall be allowed?
If CGST/SGST rate is 9% or more:
60% each of Central tax and State tax applicable on supply of such goods after appointed day.
If CGST/SGST rate is below 9%
then 40%
In case of IGST sale
30% and 20% of IGST Tax.

25. Exception to the condition of Possession of invoice Contd…
When amount shall be credited?
After payment of Central Tax/ State tax
What is the time limit for availability of this scheme ?
Six tax periods from the appointed day

26. Conditions
CGST
Credit passed on to recipient by way of reduced prices
Goods not unconditionally wholly exempt under First Schedule of CETA, 1985 or NIL rated
Procurement documents available
SGST
Same
Goods not wholly exempt under VAT

27. Conditions CGST SGST Stock details in GST TRAN-1
Statement in GST TRAN 2 at the end of each six tax periods indicating details of supplies effected
Stock stored easily identifiable
Credit allowed shall be credited to ECL in PMT 2
SGST
Same

28. TP- Input Tax Credit
140(4). Manufacturer of taxable and exempted goods or Provider of taxable and exempted services under existing law but taxable under GST
For Taxable goods/services: CC c/f u/s 140(1)
For Exempted goods/services:
CC of eligible duties on stocks held in stock on the appointed day u/s 140(3)
Application in GST TRAN-1 to separately specify details of such stock

29. TP- Input Tax Credit
140(5)- Credit of eligible duties & taxes on inputs or input services recd on or after appointed day but duty or tax paid under existing law
Meaning of eligible duties & taxes
ADE, SAD/CVD, CE-I & II Schedule of CETA, NCCD
Service Tax

30. Conditions- Sec 140(5) Condition 1
Invoice or any other duty/tax paying document recorded in books of accounts of recipient within 30 days from AD
Further extendable to 30 days

31. Conditions- Sec 140(5) Contd..
Condition 2: GST TRAN-1 contains
Name of supplier, Sl. No. and date of issue of invoice or other duty/tax paying document
Description, quantity and value of goods or services
Amount of eligible duties and taxes or VAT/[Entry Tax] charged by supplier
Date of receipt of goods or services in the accounts of recipient

32. TP- Input Tax Credit
140(6)- Credit of eligible duties on inputs held in stock on the appointed day by a RP paying tax at fixed rate or at fixed amount in lieu of tax payable under existing law
Who shall be entitled to take it?
A RP not availing composition scheme

33. Conditions for taking credit u/s 140(6) of CGST & SGST Act
Inputs/goods used/intended to be used for making taxable supplies under GST
RP eligible for ITC on such inputs under GST
Possession of invoice or other prescribed documents evidencing duty/tax payment under existing law on such inputs
Such invoice/prescribed docs issued not earlier than 12 months immediately preceding appointed day

34. TP- Input Tax Credit
140(7)-Service received by an ISD prior to appointed day
Whether eligible for distribution as credit under GST if invoice received on or after appointed day ?
Yes.

35. Admissible as ITC under GST
What if RP has Centralised registration under existing law?- Sec 140(8)
CC allowed
Credit transferable to any of the regd. Persons having same PAN for which centralised reg. obtained under existing law
Admissible as ITC under GST

36. If RP furnish last return within 3 months of appointed day
What if RP has Centralised registration under existing law ?- Sec 140(8)
If RP furnish last return within 3 months of appointed day
Credit allowed if it is either original return or a revised return where credit claimed earlier has been reduced?

37. TP- Input Tax Credit
140(9)-Reclaim of CC on input services which was reversed due to non-payment within 3 months
Condition for Re-claiming ITC
Payment made within 3 months of AD

38. TRANSITIONAL PROVISIONS RELATED
TO JOB WORK-
Sec 141

39. TP- JOB WORK- Sec 141 Job Work Excisable goods Inputs
recd at a POB removed as such or after partial processing to a job worker for further processing, testing, repair, reconditioning -
141(1)
Semi-finished goods
removed from POB to any other premises for carrying out certain manufacturing process – 141(2)
Excisable goods
manufactured at a POB removed without payment of duty for carrying out tests or any other process not amounting to manufacture to any other premises, registered or not – 141(3)

40. TP- JOB WORK No tax under GST if returned within 6 months from AD.
Removal as per existing law prior to appointed day
Inputs/goods returned to POB on or after Appointed Day (AD)
No tax under GST if returned within 6 months from AD.
Commissioner can extend it for a further period not exceeding 2 months.

41. TP-Job Work ITC liable to be recovered u/s 142(8)(a)
If not returned within prescribed period, then what?
ITC liable to be recovered u/s 142(8)(a)

42. TP-Job Work Options to manufacturer under existing law Transfer:
Semi-finished goods to premises of any regd. person for the purpose of supplying therefrom; or
excisable goods from said other premises
On payment of tax in India or without payment of tax for exports within specified period i.e 6 months from AD, further extendable for two months

43. TP-Job Work Tax not payable under 141(1) or (2) or (3), ONLY IF
Manufacturer and Job Worker declare the details of inputs/goods [Incl. capital goods] held in stock by JW on behalf of the manufacturer on the appointed day
Declaration in Form GST TRAN-1
Within 90 days
Principal and JW shall provide the details of goods held in stock by JW on the AD
Note: In case of State, in place of manufacturer, the words used are ‘Person despatching the goods’

44. MISCELLENOUS TRANSITIONAL PROVISIONS-
Sec 142

45. Return of Goods- 142(1)
Duty paid goods removed not earlier than 6 months from AD
Returned to any place of business on or after AD
By an Unregistered Person
By an Registered Person
RP eligible for refund if returned within 6 months from AD and goods identifiable to the satisfaction of proper officer
Return shall be deemed to be a Supply

46. Price Revision of goods or services-142(2)
In pursuance of a Contract entered into prior to AD
Upward revision of Price on or after AD
Downward revision of Price on or after AD
Supplementary invoice or Debit Note to recipient within 30 days of price revision
Credit Note to recipient within 30 days of price revision
Shall be deemed to be issued in respect of an outward supply under GST
Reduction in tax liability of RP only if recipient reduced his ITC

47. Supply of goods or services or both on or after AD -142(10)
In pursuance of a Contract entered into prior to AD
Liable to tax under GST

48. Disposal of Refund Claim under existing law-142(3)
Refund claim filed Before On or after AD
For refund of Cenvat Credit, duty, tax, interest or any other amount paid under existing law
Disposal as per existing law
Claim accepted
Claim fully or partially rejected
Payment in cash
Rejected amount shall lapse

49. Disposal of Refund Claim under existing law-142(4)
Refund claim filed after AD
For refund of any duty or tax paid under existing law in respect of goods or services exported before or after AD
Disposal as per existing law
Claim fully or partially rejected
Rejected amount shall lapse

50. Disposal of Refund Claim under 142(3) & (4)
No refund of CENVAT credit if balance of said amount on AD c/f under GST

51. Disposal of Refund Claim under existing law-142(5)
Refund claim filed after AD
For refund of any tax paid under existing law on services not provided
Disposal as per existing law
Claim accepted
Payment in cash

52. Appeal, Review or Reference Proceeding -142(6)
Initiated Before On or after AD under existing law
Disposal as per existing law
Relating to a claim for CENVAT Credit
Relating to Recovery of CENVAT Credit
Claim for CC admissible
Amount rejected
If becomes recoverable, recovery under GST as an arrear of tax, unless recovered under existing law
Refund in cash
Not admissible as ITC under GST
Not admissible as ITC under GST

53. Appeal, Review or Reference Proceeding -142(7)
Initiated Before On or after AD under existing law
Relating to any output duty or tax liability
Disposal as per existing law
Amount admissible to claimant
If becomes recoverable, recovery under GST as an arrear of duty/tax, unless recovered under existing law
Amount rejected
Refund in cash
Not admissible as ITC under GST
Not admissible as ITC under GST

54. Assessment or adjudication Proceedings -142(8)
Instituted Before On or after AD under existing law
Any amount of tax, interest, fine or penalty
Becomes Refundable
Amount rejected
If becomes recoverable, recovery under GST as an arrear of tax, unless recovered under existing law
Refund in cash
Not admissible as ITC under GST
Not admissible as ITC under GST

55. Return furnished under existing law- Revision after AD
Revision of Return-142(9)
Return furnished under existing law- Revision after AD
Revision within specified time limit under existing law
If amount recoverable or CENVAT Credit inadmissible, recovery under GST as an arrear of tax, unless recovered under existing law
Amount Refundable or CENVAT Credit admissible
Amount rejected
Refund in cash
Not admissible as ITC under GST
Not admissible as ITC under GST

56. Tax leviable under GST on such supply
Both VAT and Service tax paid under existing law, supply made after AD-142(11)(c )
Tax leviable under GST on such supply
Credit of VAT and Service tax shall be allowed
File Declaration in TRAN-1 within 90 days of AD
Giving details of VAT and Service tax payment before AD

57. Goods sent on approval basis-142(12)
Not earlier than 6 months from AD
Rejected/Not approved by buyer and returned to seller
Within 6 months from AD
Not within 6 months from AD
After 6 months from AD
Tax payable by Seller
Tax payable by person returning the goods
No Tax
Details to be submitted within 90 days in TRAN-1

58. Supplier made sale of goods-TDS under State/UT VAT-142(13)
Invoice also issued before AD
No TDS u/s 51 where payment is made on or after AD

59. Any Question ?

60. CA D.S.Agarwala agards@gmail.com 94330-97972