GST TRAN 2 form- 5 things to keep in mind with Excel Format

After the advent of TRAN 1, the deadline is approaching and everyone is on toes to meet up with the deadline. Hereunder we shall go through the applicable provisions

It provides that anybody who is not in possession of CTD or Excise Invoice and is willing to take un-utilized credit lying in State Act or Central Act shall be required to furnish TRAN 1 wherein details regarding stock held should be reported in Table 7(a) and 7(d). Taxpayers needs to file TRAN 1 in order to open up the utility of TRAN 2 for claiming credit on Ad hoc basis.

The act is laid down for your quick revision and awareness:

For traders who do not have excise or VAT invoice, there is a scheme to allow credit to them on the duty paid stock. The features of this scheme are as under:

1. The scheme is operative only for six months from the appointed day. It is not available to manufacturer or supplier of service. It is available to traders only.

Point to be noted – Precisely, it means that the goods on appointed date should be sold within a period of 6 months from appointed date otherwise no credit for the same shall be available.

2. Credit @ 60% on such goods which attract central tax @ 9% or more and @ 40% for other goods of GST paid on the stock cleared after the appointed day would be allowed. However, such goods should not be unconditionally exempted goods or taxed at nil rate under the existing law. It has also been provided that where integrated tax is paid on such goods, the amount of credit shall be allowed at @ 30% and 20% respectively of the said tax.

Point to be noted – If you do want to avail the option prepare a reconciliation of stock on hand on 1st July 2017 and detailed movement of goods till December 2017.

3. Credit would be allowed after the GST is paid on such goods subject to the condition that the benefit of such credit is passed on to the customer by way of reduced prices.

Point to be noted – Proper reconciliation and reduction on cost details should be prepared for smooth transition and credit.

4. The statement of supply of such goods in each of the six tax periods has to be submitted.

 Point to be noted – TRAN 2 should be furnished for the period of July 17 to December 2017.

5. Stocks stored should be easily identifiable

Format of TRAN 2 in excel utility.