Any business registered before GST & having closing stock, will be entitled to claim credit of tax paid under pre-GST regime. To help businesses transition smoothly and carry forward their input tax credit, the CBEC has released transition forms called TRAN 1
The procedure for transferring existing input tax credit to GST for entities that had service tax or VAT or central excise registration has been provided in the Transitional Provisions rules of GST. In accordance with the provisions, everybody who has registered for GST can file GSTR TRAN-1 to avail the input tax credit.
In TRAN-1 the following details must be submitted by the taxpayer for transfer of input tax credit. Form TRAN-1 must be filed online on the GST Portal.
- The amount of tax or duty availed or utilized by way of input tax credit under each of the existing laws till the appointed day;
- The amount of tax or duty yet to be availed or utilized by way of input tax credit under each of the existing laws till the appointed day;
- Confirm that you have submitted ALL the returns required under existing law for past 6 months
- Details of stock held on the appointed day;
- In the case of a claim under sub-section (5) of section 140, furnish the following details, namely:
- The name of the supplier, serial number and date of issue of the invoice by the supplier or any document on the basis of which credit of input tax was admissible under the existing law;
- The description and value of the goods or services;
- The quantity in case of goods and the unit or unit quantity code thereof;
- The amount of eligible taxes and duties or, as the case may be, the value added tax [or entry tax] charged by the supplier in respect of the goods or services; and
- The date on which the receipt of goods or services is entered in the books of account of the recipient.
Extension in DEADLINE for filling:‑
The government extended the deadline by a month till November 30 for businesses to claim credit of transitional stock in the Goods and Services Tax (GST) regime. “Form GST TRAN-1 (with revision facility) extended to November 30, 2017,” said a tweet by GST’a) GOI, the official twitter handle of the government for GST.
Later on the Order No. 07/2017-GST dated 28th October 2017 was also issued by the Government of India Ministry of Finance
- The extension would aid in subsiding the anxiety among various industry players, caused on account of revision option of TRAN-1 not being available on the portal even 4 days prior to the due date,”
- It also allowed businesses to revise the form once in the case of any
- Any credit that you want to carry forward from the old regime must be eligible credit under GST as well.
- Accumulated credits of old regime can be taken to GST. This is allowed only when you have filed past six months returns under the old regime. So you must file old returns of VAT/ Excise/ Service Tax properly.
- Any central taxes and duties such as Excise and Service tax will be carried forward as CGST
- Any state taxes such as VAT will be carried forward as SGST
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