Are you worried about what will happen to the input tax credit [ITC) on your inputs (held as input/ semi-finisbed goods/ finished goods]/capital floods upon transition to GST?
The law allows you to carry forward your input tax credit and ensures that no ITC is lost while migrating into the new regime. The following table provides the details:-
| S. No. | CATEGORY OF TAXPAYER | DETAILS TO BE PROVIDED | AMOUNT OF ITC AVAILABLE |
| 1 | Manufacturers and Service providers already registered under existing Central laws. | Closing balance of Cenvat credit. | Closing balance of Cenvat credit as per last return. |
| 2 | Manufacturers and Service providers already registered under existing Central laws. | Balance of un-availed Cenvat credit On capital goods. | Amount of Cenvat credit on Capital Goods not availed earlier. |
| 3 | Manufacturers and Service providers Supplying Exempted Goods / Services under existing laws (not liable to be registered under existing Central laws). | Stock of inputs (held as inputs / semi-finished goods / finished goods) to be used for making taxable supplies where duty paid invoices available. | Amount of duty paid as per available duly paid invoice. |
| 4 | Trader (not liable to be registered under existing Central laws) | Stock of inputs (held as inputs / semi-finished goods / finished goods to be used for making taxable supplies where duty paid invoices available | Amount of duty paid as per invoice details submitted. |
| 5 | Trader (not liable to be registered under existing Central laws). | Stock of inputs (held as input/ semi-finished goods/finished goods) to be used for making taxable supplies where duty paid duty paid invoices not available. | In case intra-State supplies
• 60% at the Central tax paid (in case rate of total tax is 18% or 28%). • 40% of the Central tax paid (in case rate of total tax is 5% or 12%). In case inter-State supplies • 30% of the integrated tax paid (in case rate of total tax is 18% o r 28%). • 20% of the integrated tax paid (in case rate of total tax is 5% or 12%). |
Form to be used: For SI. Nos. 1 to 4, Form GST TRANS1 is to be used, while for SI. No. 5, GST TRANS 2 Form is to be used.
Timeline for Submission: For SI. Nos. 1 to 4, the form is to be submitted on or before 30.09.2017. Commissioner can extend the time limit for another 90 days.
More than one Form can be filed.
For SI. No. 5, the form is to be submitted at the end of each of the first six months.
