CMA Rakesh Bhalla
CMA Rakesh BhallaGST

Webinar on Preparation and Filing of  TRAN 1- (Addressed by Mr. Shashi Bhushan Singh, VP, GSTN)  was held on September 06, 2017 as many assesses have been  facing problem to file TRAN-1. Webinar speech would help assesses to understand various matters relating to TRAN-1.  Relevant abstract is given below.

♦ In case of state, there is one, critical issue that one has to declare the pending C forms. The turnover of the Forms that is pending and the tax that is applicable. payable on the differential tax because they would have paid tax on concessional rate. Similar for F form and H form, so they have to declare the tax pending on such form and pendency is from this April, 2015– June, 2017.

♦ You should remember that there can never be a negative credit in the last carried forward. So initially, in our application was throwing a negative but now it has been corrected. It should have always been zero, the taxpayer in normal course were required to make it zero but people didn’t make zero and in some cases the negative entry has got posted in which efforts are being made to correct.

♦ In Trans 1 , the credit that will be carried forward will be zero if the difference tax payable on account of C Form , Form , H Form is more than the balance of ITC that is being carried forward of VAT

Section 6(a) & 6(b) : Taxpayer will be carrying forward the credit that he has not availed on the capital goods that are lying with the taxpayer. In most cases, the manufacturer will be having huge credits.

♦ Now, this 7a is for central for stock that you have on the day preceding the appointed date and 7c is for state taxes and 7c is when you have invoices in which tax was paid and then 7d when you had invoice in which the tax payment was not their especially in case of states where single point taxation as their on some commodities, they are required to fill this table 7d.

♦ Table 8 is w.r.t taxpayers having centralised registration under earlier law but are now required to have a state wise registration so that they can take credit in their centralised registered entity and then transfer credit to the different GSTN that got registered under the GST regime under different states having same PAN, they are required to indicate their distribution in this table, the credit then transferred to the different units.

♦ Table 9a is for the job worker and manufacturer, because the transition law provide that if goods are returned within 6 months from the appointed date then there will be no tax liability

♦ Table 10 is, in some states they have this that agents were not required to pay tax and the principal was required to pay tax but under GST both agent and principal are liable to pay tax so declaration is being taken from the principal and the agent of the stock that is lying with the agent and the input tax that has to be taken as credit by the agent.

♦ Table 11 state that one has to take credit of the tax paid under earlier law. In certain transaction both taxes have been paid and in some transaction say like say advance on hotel booking reservations, since tax was levy under earlier law in service tax and not in VAT , so only service tax would have been paid and credit would have be taken if the supply of goods and services taking place in GST. (Copy of the full speech attached for your reference)

The GST Council met for the 21st time  on 09th September 2017 to discuss some of the issues after the implementation of the Goods and Service Tax or GST. During the meet, various states raised the challenges faced by traders and enterprises in registering and filing GST returns. The major highlights of the meeting are as under:

  • The last date for filing of sales return or GSTR-1 has been extended by a month to October 10 instead of September 10 earlier.
  • The last date for filing GSTR-2 for July has been extended to October 31 and GSTR-3 to November 10.
  • The last date for filing GSTR-4 and GSTR-6 are October 18 and October 13 respectively.
  • The deadline for GSTR-3B—a self-declaration form—have been extended by four months i.e. till December. Detail of returns with revised due date is given below
Return Month Revised due date Additional comments
GSTR-1 July 2017 10-Oct-17 3rd October for persons with turnover more than Rs. 100 crores
GSTR-2 July 2017 31-Oct-17 —–
GSTR-3 July 2017 10-Nov-17 ——
GSTR-4 (Composite scheme) July-September 2017 18-Oct-17 (no change) GSTR-4A is not required for this quarter
GSTR-6 (ISD) July 2017 13-Oct-17 ——
  • The Council increases cess on mid-sized cars by 2%, big cars by 5 % and SUV by 7%. No change in small cars, 13-seater vehicles & hybrid cars.
  • Handicraft artisans with annual earnings of upto Rs 20 lakh will not require GST registration.
  • The government decided to form a 3-member inter-ministerial team to look at the functioning of GSTN to address issues faced by users while uploading GST returns
  • The Council discussed tax rates of 134 items, including unbranded food products.
  • Businesses selling branded food are deregistering their brands to evade tax as unbranded food is not taxed. The fitment committee proposed to the GST Council to consider May 15, 2017, as the cut-off date for considering a brand as registered for the purpose of levy of GST, irrespective of whether or not the brand is subsequently deregister.

Notification no. 33/2017 – Central tax dated 15th September, 2017

Central Government has notified category of persons as specified in clause (d) of sub-section (1) of section 51 of CGST Act which are required to deduct tax from payment made to the suppliers of taxable goods or services. However, the date from which tax is to deducted will be notified later.  list of persons notified by CG.

(a) a department or establishment of the Central Government or State Government; or

(b) local authority; or

(c) Governmental agencies; or

(d) such persons or category of persons as may be notified by the Government on the recommendations of the Council, (hereafter in this section referred to as “the deductor”),

to deduct tax at the rate of one per cent. from the payment made or credited to the supplier (hereafter in this section referred to as “the deductee”) of taxable goods or services or both, where the total value of such supply, under a contract, exceeds two lakh and fifty thousand rupees: Provided that no deduction shall be made if the location of the supplier and the place of supply is in a State or Union territory which is different from the State or as the case may be, Union territory of registration of the recipient.

Explanation.––For the purpose of deduction of tax specified above, the value of supply shall be taken as the amount excluding the central tax, State tax, Union territory tax, integrated tax and cess indicated in the invoice

Notification 34/2017 – Central tax dated 15th September, 2017

Central Government has amended Central Goods & Service Tax rules, 2017. Relevant changes in relation to Form Trans -01 are stated below:

  • Every registered person who has submitted declaration inForm GST TRAN-01 within the time period specified, may revise such declaration once and submit the revised declaration within the time prescribed.( 31st October 2017)
  • In Form GST TRAN -01:

(i) In Serial No. 5(a) in the heading after the words, figures & brackets “section 140(1)”, the words, figures, brackets & letter. “section 140(4)(a) and section 140(9) shall be inserted.

(ii) In Serial No. 7(a), in the table, in Serial No. 7A, in the heading, after the word “invoices”, the words, brackets and letters “(including Credit Transfer Document (CTD))” shall be inserted.

(iii) Following instructions shall be inserted in Form TRAN -01 :

1. Central Tax credit in terms of sub-section (9) of section 140 of the CGST Act, 2017 shall be availed in column 6 of table 5 (a).

2. Registered persons availing credit through Credit Transfer Document (CTD) shall also file TRANS 3 besides availing credit in table 7A under the heading “inputs.”

Notification 35./2017 – Central tax dated 15th September, 2017

Central Government has notified the last date for filiing form GSTR 3B along with payment of tax liability for respective month from August to December, which is stated as under:

S.No Month Last date for filing Form GSTR -3B Last date for payment of tax, interest etc.
1 August, 2017 20th September, 2017 20th September, 2017
2 September, 2017 20th October, 2017 20th October, 2017
3 October, 2017 20th November, 2017 20th November, 2017
4 November, 2017 20th December, 2017 20th December, 2017
5 December, 2017 20th January, 2018 20th January, 2018

Alignment of duty drawback scheme with GST law

♦ Central Government has notified the Customs and Central Excise Duties Drawback Rules, 2017 (‘Drawback Rules’) to replace the existing Customs, Central Excise Duties and Service Tax Drawback Rules, 1995. These rules are effective from October 1, 2017 onwards.

♦ Under the Drawback Rules, drawback will be granted for incidence of customs and central excise duties and not for GST and compensation cess. Hence, drawback to offset customs duty incidence will only be available (popularly known as ‘lower rate drawback’). The exporters can avail credit of GST and compensation cess.

♦ Consequently, revised All Industry Rates (AIR) of Drawback have also been notified. In case where Nil rate or no rate of drawback is provided in AIR Schedule, an exporter can apply for fixation of brand rate of drawback. The exporters who got brand rate fixed earlier, will be required to get the same fixed afresh for exports post October 1, 2017

Extension of date of implementation of electronic self-sealing for exports

Vide Circulars No. 26/2017-Cus dated July 1, 2017 and 36/2017-Cus dated August 28, 2017, CBEC introduced the procedure of electronic self-sealing of containers using RFID seals for the exporters. The procedure was proposed to be made effective from October 1, 2017CBEC has extended the effective date of implementation of electronic self-sealing procedure to November 1, 2017.

Reduction in rate of GST for various goods, and amendment relating to branded food items – Notification Nos. 27 and 28/2017-Central Tax (Rate), 27 and 28/2017-Integrated Tax (Rate) and 27 and 28/2017-Union Territory Tax (Rate) have been issued on 22-9-2017 to amend Notification Nos. 1 and 2/2017 (Rate) for CGST, IGST and UTGST laws, respectively. •GST rate in respect of various goods has been revised by the said notifications.

Following goods have been exempted from GST

♦ Cotton seed oil cake

♦ Khadi fabric, sold through KVIC and KVIC certified institutions/outlets

♦ Idols made of clay

♦ Brooms or brushes, consisting of twigs or other vegetable materials

♦ Indigenous handmade musical instruments are exempted as per S. No. 143 of Notification No. 2/2017-Central Tax (Rate). Now, 134 such musical instruments have been specified for coverage under this exemption.

Revision in GST rate

2.5% CGST or 5% IGST rate has been prescribed for:

♦ Walnuts, Dried tamarind, Roasted gram

♦ Lobhan, dhoop batti, dhoop, sambhrani

♦ Grass, leaf or reed or fibre products, including mats, pouches, wallets

♦ Paper mache articles

♦ Duty Credit Scrips

♦ Corduroy fabrics, Saree fall

♦ Cotton quilts of sale value not exceeding Rs. 1000 per piece

♦ Worked corals other than articles of coral

♦ Rosaries, prayer beads or Hawan samagri

6% CGST or 12% IGST has been prescribed for:

♦ Batters, including idli / dosa batter

♦ Rubber bands

♦ Idols of wood, stone and metals (excluding precious metals)

♦ Tableware and Kitchenware of wood

♦ Textile caps

♦ Stone inlay work

♦ Statues, statuettes, pedestals; other ornamental goods essentially of stone

♦ Tableware, kitchenware, other household articles and toilet articles (Headings 6911, 6912)

♦ Cotton quilts of sale value exceeding Rs. 1000 per piece

9% CGST or 18% IGST has been prescribed for:

♦ Custard powder

♦ Medical grade sterile disposable gloves

♦ Plastic raincoats

♦ Rice rubber rolls for paddy de-husking machine

♦ Computer monitors not exceeding 20 inches

♦ Kitchen gas lighters

0.125% CGST or 0.25% IGST has been prescribed for: Unsorted diamonds (Earlier they were liable to 1.5% CGST or 3% IGST)

Brand Name on certain food items and animal or vegetable fertilisers.

Phrase ‘brand name’ along with ‘registered brand name’ has also been defined now.

♦ Registered brand name will mean a brand registered as on 15-5-2017 under Trade Marks Act, 1999 or Copyright Act, 1957 or under any law in force in any other country. De-registration of the brand after the above date will not be relevant.

♦ Person availing exemption from GST will have to file affidavit before jurisdictional Commissioner and print with indelible ink on the unit container, that he is voluntarily foregoing his actionable claim or enforceable right on such brand name.

Amendments to the Customs Valuation Rules, 2007

Definition of “place of importation” has been inserted in Rule 2 of the Customs Valuation Rules, 2007, to mean “customs station, where the goods are brought for being cleared for home consumption or for being removed for deposit in a warehouse”.

The following amendments have been made vide Notification No. 91/2017-Cus. read with Circular No. 39/2017-Cusrstwhile Rule 10(2)(b) which prescribed inclusion of loading, unloading and handling charges associated with the delivery of the imported good s at the place of importation has been deleted. Rule 10(2)(a) has been substituted to include cost of transport, loading, unloading and handling charges associated with the delivery of the imported goods to the place of importation.   Effect of amendments

Costs incurred towards loading, unloading and handling charges at the place of importation are not to be included in the assessable value.

The erstwhile practice of loading one per cent of the CIF value towards loading, unloading and handling charges has been removed.

The new provision gives the basis for computation of transport costs, inclusive of loading, unloading and handling charges in cases where information relating to actual costs are not available.

Questions left to be answered  

  • As costs towards (i) transport and (ii) loading, unloading and handling are provided within Rule 10(2)(a) itself, would the non-availability of the cost of either element lead to a complete rejection of the additions and adoption of the notional rate of twenty per cent of the value of the goods?
  • In terms of the definition of “place of importation”, can the charges incurred towards unloading at the customs station be included in the assessable value as Circular No. 29/2017-Cus. only discusses the nature of loading and handling charges at the load port?

Service tax

Certain transitional issues arising with respect to payment of service tax after 30th June 2017 (Refer Circular 207/5/2017-Service Tax dt 28-09-2017)

Reflection of transitional credit arising out of payment of service tax on reverse charge basis after 30th June 2017 and by 5th/6th July 2017

♦ Details of credit arising as a consequence of payment of service tax on reverse charge basis after 30th June 2017 by 5th/6th July 2017, the details should be indicated in Part I of Form ST-3in entries,, 13 2.2.6 and 13 3.2.6. Linked entries should be made in Part H of Form ST-3. In case the return has already been filed by or after the due date, these details should be indicated in the revised return, the time for filing of which is 45 days from the date of filing of the return.

♦ Hence allST-3 returns for the period 1-4-2017 to 30-6-2017 which have been filed upto and inclusive of the 31st day of August 2017, shall be deemed to have been filed on 31-8-2017. This will give all such assessees some more days to file a revised return, if necessitated. Once details of such credit are reflected in the ST-3, the assessee may proceed to fill in the details in Form GST TRAN-1. It may be noted that as on date, GST TRAN-1 can be filed upto 31-10-2017 and can also be revised.

Payment of service tax on or after 1-7-2017 as a consequence of detection of evasion or any other circumstances

♦ In the case of assessees who were not registered under ACES. It may be recalled that in the registration module of ACES, there is a category of “non assessee registration”. This may be used to obtain registration and make payment of service tax.

Appellant did not have the capacity to act as pure agent and did not fulfill the conditions of pure agent under the relevant rule. Hence the appellant will not be entitled to exclude expenses incurred – (Appeal No. ST/2744/2012-CU[DB] M/s. Sercon India Pvt. Ltd. Vs. CST- FINAL ORDER No. 56789/2017)

Central Excise

♦ Duty demanded by the department on Nuts, bolts and washers which were being supplied directly at the project sit as it  should be included in the value of galvanized tower materials-  Held that the authorities below have not examined the issues properly in a right perspective , therefore,  matter remanded to the Adjudicating Authority  for denovo adjudication.  (M/s KEC International Ltd Vs. CCE Jaipur  Delhi Tribunal Final Order No. 56812/2017 Dated

♦ Exemption of the excise duty under Notification No. 67/1995-CE dated 16/03/1995 denied by the Department. – Held that there is  no any evidence to prove that the goods (Sugar syrup) , in question, in form in which they come into existence in the appellant’s factories, are marketable. The same is set aside. The appeals are allowed with consequential relief. (M/s Ganesh Bakers Pvt. Ltd. Vs. CCE, Raipur Final Order No. 56814/2017 Dated : 27/09/2017.


♦ Issuance of SCN by The Additional Director General, DRI was was challenged- It has been held that  DRI prospectively appointed as ‘proper officer’  for the purpose of Section 28 of the Customs Act. Hence,  from 06/07/2011 ADG-DRI has been empowered to issue  demand notice under Section 28  – Matter remanded back to the authority for fresh decision. ( M/s Disha Overseas Pvt. Ltd.  CC (ICD), New Delhi Final Order No. 56807-56809/2017)

♦ In order to avail duty draw back benefits on export goods- old/torn cloths were packed in the boxes and department  found after reopened for examination- appellants who submits that the goods are still in the custody of the Department and requests that the goods need to be re-examined but under the supervision of an independent authority on the cost of the appellant. (M/s Krush Exim Vs. CC,Delhi- Final Order Nos. 56750 – 56751/2017)  

*Member ZAC Chandigarh, Service Tax, Govt. of India, Member RAC Chandigarh, Central Excise & Customs, Member Indirect Tax committee SIAM , Member, ASSOCHAM Indirect Taxes Committee, Chief General Manager Finance- SML Isuzu Ltd. , Winner Achiever  Award 2015 By ICAI (CMA)

Information source- M/s LKS, M/s Nitya tax Associates, Economic Times, Financial express, and other sources-many thanks to all.

With Warm Regards & Jai Hind

(Author can be reached at

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One Comment

  1. Vinod K says:

    Dear Sir,
    What will happen to Service Tax deposited on RCM basis after 6th July,2017. How such tax paid can be claimed as Input Tax.

    Thanks & Regards,

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