Alok Maheshwari

Alok Maheshwari

GST Council and CBEC has not left any chance to give shockwaves and surprises to the industries and businesses for aligning of the transitions provisions of the current tax laws into GST.

1. Return Filing date of Existing Service tax law for the period April 17 to June 17

CBEC has notified the Due date is 15.08.2017 to file the Service Tax return for the Period 01.04.2017 (April-2017) to 30.06.2017 (June-2017) vide Notification number 18/2017 dated 22.06.2017.

Assessee can revise this return within 45 days from the filing of this return.

2. Transition provisions under Central Goods and Service Tax Act, 2017

Provisions of Chapter XX from section 139 to 142 of Central Goods and Service Tax Act,2017 (thereafter called “CGST Act”) to deal with various provisions in the transition phase.

In one of the sub- section (8) of Section 140 of the CGST Act provides“

(8) Where a registered person having centralised registration under the existing law has obtained a registration under this Act, such person shall be allowed to take, in his electronic credit ledger, credit of the amount of CENVAT credit carried forward in a return, furnished under the existing law by him, in respect of the period ending with the day immediately preceding the appointed day in such manner as may be prescribed:

Provided that if the registered person furnishes his return for the period ending with the day immediately preceding the appointed day within three months of the appointed day, such credit shall be allowed subject to the condition that the said return is either an original  return or a revised return where the credit has been reduced from that claimed earlier:

Provided further that the registered person shall not be allowed to take credit unless the said amount is admissible as input tax credit under this Act

Another sub- section (9) of Section 140 of the CGST Act provides“

“Where any CENVAT credit availed for the input services provided under the existing law has been reversed due to non-payment of the consideration within a period of three months, such credit can be reclaimed subject to the condition that the registered person has made the payment of the consideration for that supply of services within a period of three months from the appointed day”.

3. Transition Forms as declaration  

As per transitional Rules issued by GST Council on 3rd June 2017 for transitional Provisions in which mentioned two forms GST TRAN – 1 and GST TRAN – 2 should be filed as declaration on common portal of GST within 90 days from the appointed date of the GST laws.

On the recommendations of the Council, Commissioner may extend the period of 90 days by a further period not exceeding 90 days.

Part of GST TRAN – 1

8. Details of transfer of CENVAT Credit for registered person having centralized registration under existing law (Section 140(8))
Sr. 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

4. Recommendation for change in the Transition Forms

There is no provision in the Trans Form -1 or Trans Form -2   to capture details have been provided in sub section 140(9) of CGST Act wherein CENVAT credit availed for the input services under the existing law has been reversed due to non-payment of the consideration to Vendors and reavail CENVAT Credit within a period of three months. The GST Council or CBEC have fixed the time line 15th August 2017 for Return filing date  under service tax law for the period April to June 17.  Therefore GST Council or CBEC have intended to allow CENVAT Credit up to 30th September 2017 for the non-payment cases to vendors but they have not provided mechanism in the transition format to how to deal these Credit cases and should be aligned with the CGST Credit in the Electronic Credit Ledger.

Our recommendation to GST Council and CBEC Board to come out with New Trans form as soon as possible to deal these cases otherwise Industries and businesses in dilemma for reavail CENVAT Credit up to 30th September 2017.

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