Introduction
With shifting to GST regime from existing law, fear of businesses is to avail credit of taxes and duties paid under existing law in GST regime. Most of the businesses have paid taxes on goods and services and input of those taxes are to be carried to GST regime so that tax benefit of those credits and taxes won’t be lose out. In favor of this, CBEC has issued 2 forms for claiming transitional credits.
Every person who is registered under the GST regime and wishes to claim the tax credit of ITC available under the pre-GST regime is required to file these Transitional Forms namely- TRAN-1 and TRAN-2 as per their requirement.
Here, we will discuss TRAN-1 Form. A person whether registered or not under Pre-GST regime and not opting for composition scheme under GST regime can forward input tax credit through TRAN-1 form. Input tax credit is available on taxes paid against purchases of goods-raw/semi-finished/ finished held as stock as on 30th June, 2017. It is also available on goods sent to agents or goods held as stock/capital goods by agents. This form contains 12 tables/parts. Table wise points are discussed in detail below-
1. GSTIN– This field is auto-populated and GSTIN of the person filing this form will be auto-populated here.
2. Legal Name of Registered Person – Legal name of registered person will be auto-populated here.
3. Trade Name: Trade name, if any will be mentioned here
4. Whether all the returns required under existing law for the period of six month immediately preceding the appointed date have been furnished- Here, we need to mark “Yes/No”. The carried forwarded tax credits of old regime returns can be availed as credit in GST regime only when you have furnished all the returns for the past six months under the old regime.
5. Amount of tax credit carried forward in the return filed under existing laws: A registered person under GST regime other than a person opted for composition scheme, is entitled to take credit of the amount of carried forwarded tax in the return relating to the period ending with the day immediately preceding the appointed day i.e. 30th June 2017. This part is further divided into 3 sub-parts which are as below-
5(a)Amount of Cenvat credit carried forward to electronic credit ledger as central tax (Section 140(1) and Section 140(4)(a))- This part will be filed by those persons who want to avail credit of carried forwarded Cenvat Credit relating to Pre-GST regime under GST regime in electronic credit ledger as CGST. Cenvat credit of Excise and Service tax reflected in their respective returns can be claimed by filling following details-
| S. No. | Registration no. under existing law (Central Excise and Service Tax) | 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 cenvat credit Carried forward in the said last return | Cenvat Credit admissible as ITC of central tax in accordance with transitional provisions |
| 1 | 2 | 3 | 5 | 6* | |
* Registered person shall not be allowed to take credit in the following circumstances-
(i) Where the said amount of credit is not admissible as input tax credit under GST regime; or
(ii) where he has not furnished all the returns required under the existing law for the period of six months immediately preceding the appointed date; or
(iii) Where the said amount of credit relates to goods manufactured and cleared under such exemption notifications as are notified by the Government.
5(b) Details of statutory forms received for which credit is being carried forward- Here, details of Statutory forms i.e. “Form C/F/H/I” for the period of April 2015 to June 2017 are required to be given. Following information will be provided for each of statutory forms-
| TIN of Issuer | Name of Issuer | Sr. No. of Form | Amount | Applicable VAT Rate |
| C-Form | ||||
| Total | ||||
| F-Form | ||||
| Total | ||||
| H/I –Form | ||||
| Total | ||||
5(c) Amount of tax credit carried forward to electronic credit ledger as State/UT Tax (For all registrations on the same PAN and in the same State) – To avail input tax credit of carried forwarded VAT, this part will be filled. In GST regime, Carried forwarded Credit of VAT is allowed after deducting deferential tax payable for the pending statutory forms. It is also required to fill turnover for which statutory forms are pending along with difference tax payable thereon, along with the amount of ITC which is liable to be reversed due to such pending statutory forms.
Registration No. in existing law |
Balance of ITC of VAT and [Entry Tax] in last return |
C-Forms |
F-Forms |
ITC reversal relatable to [(3) and] (5) |
H/I Forms |
Transition ITC 2- (4+6-7+9) |
|||
Turnover for which forms Pending |
Difference tax payable on (3) |
Difference tax payable on (3) |
Tax payable on (5) |
Turnover for which forms Pending |
Tax payable on (7) |
||||
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
9 |
10 |
6. Details of capital goods for which unavailed credit has not been carried forward under existing law (section140 (2)): This part is required to be filed to avail benefit of credit of unavailed tax credit in respect of capital goods, not carried forward in a return, furnished under the existing law i.e. Pre GST regime, for the period ending as on 30th June 2017. This benefit is only be available if credit is admissible under Pre-GST regime as well as Post GST regime. This part is further divided into 2 part-
6(a). Amount of unavailed cenvat credit in respect of capital goods carried forward to electronic credit ledger as central tax- This part is required to be filled to claim unavailed CENVAT credit of Excise duty, CVD and SAD in respect of capital goods. Following details are required under this part-
S. No |
Invoice/ Documents |
Invoice/ Document Date |
Supplier’s registration no. under existing law |
Recipients’ registration no. under existing law |
Details of capital goods on which credit has been partially availed |
Total eligible cenvat credit under existing law |
Total cenvat credit availed under existing law |
Total cenvat credit unavailed under existing law (admissible as ITC of central tax) (9-10) |
||
Value |
Duties & Taxes Paid |
|||||||||
ED/ CVD |
SAD |
|||||||||
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
9 |
10 |
11 |
6(b)Amount of unavailed input tax credit carried forward to electronic credit ledger as State/UT tax- This part will be filled to claim unavailed input tax credit of VAT/Entry Tax in respect of capital goods for all the registrations on the same PAN and in the same state. Following details are required under this part-
S. No |
Invoice / Document no. |
Invoice / document Date |
Supplier’s registration no. under existing law |
Recipients’ registration no. under existing law |
Details regarding capital goods on which credit is not availed |
Total eligible VAT [and ET] credit under existing law |
Total VAT [and ET] credit availed under existing law |
Total VAT [and ET] credit unavailed under existing law (admissible as ITC of State/UT tax) (8-9) |
|
Value |
Taxes paid VAT [and ET] |
||||||||
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
9 |
10 |
7. Details of the inputs held in stock in terms of sections 140(3), 140(4)(b) and 140(6)- This part is to be filled to avail credit of eligible duties and taxes in respect of inputs held in stock and inputs contained in semi-finished goods and finished goods held in stock as on 30th June, 2017 by a registered person, who was not liable to be registered under old regime or who was engaged in supply of exempted or tax free goods/services or goods which have suffered tax at the first point of their sale or who was either paying tax at fixed rate or paying a fixed amount in lieu of tax payable under old regime. This part is further divided into 3 sub-parts-
7(a).Amount of duties and taxes on inputs claimed as credit excluding the credit claimed under Table 5(a)- This section is applicable for claiming credit other than Cenvat Credit of Excise/Service tax already claimed in table 5(a).
Part 7A- Where duty paid invoices or other documents are available for inputs or inputs contained in semi-finished and finished goods with a manufacturer or service provider. This part will be used to claim input tax credit of such excise duty or service tax as input tax credit of CGST and invoices/documents of inputs or inputs contained in semi-finished and finished goods evidencing payment of tax are available..
Part 7B- This part is to be filled only by those who are not manufacturer or service provider who was unregistered in the old regime and are not in possession of invoices/documents of inputs evidencing payment of tax. This part would be filled by dealers or traders where duty paid invoices or documents are not available.
| S. No | Details of inputs held in stock or inputs contained in semi-finished or finished goods held in stock | ||||
| HSN (at 6 digit level) | Unit | Qty. | Value | Eligible Duties paid on such inputs | |
| 1 | 2 | 3 | 4 | 5 | 6 |
| 7A Where duty paid invoices or any other document are available | |||||
| Inputs | |||||
| Inputs contained in semi-finished and finished goods | |||||
| 7B Where duty paid invoices are not available (Applicable only for person other than manufacturer or service provider) – Credit in terms of Rule 1 (4) | |||||
| Inputs | |||||
7(B).Amount of vat and entry Tax paid on inputs supported by invoices/documents evidencing payment of tax carried forward to electronic credit ledger as SGST/UTGST- This part will be used to claim credit of inputs and inputs contained in semi-finished and finished goods in such situation where invoices of Pre-GST regime has been recorded after appointed day and tax has already been paid under old regime. Following details are required to be mentioned under this part-
| Details of inputs in stock | Total input tax credit claimed under earlier law | Total input tax credit related to exempt sales not claimed under earlier law | Total Input tax credit admissible as SGST/UTGST | ||||
| Description | Unit | Qty | Value | VAT [and Entry Tax] paid | |||
| 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
| Inputs | |||||||
| Inputs contained in semi-finished and finished goods | |||||||
7(C). Stock of goods not supported by invoices/documents evidencing payment of tax (credit in terms of rule 1 (4))- This part is applicable only for those persons who were unregistered under the Pre-GST regime and not having invoices/documents evidencing payment of tax. Such persons must be engaged in supply of goods, which have suffered tax at the first point of their sale i.e. single point of taxation must be there in their respective state. Following details are required to be mentioned under this part-
| Details of inputs in stock | ||||
| Description | Unit | Qty | Value | Tax paid |
| 1 | 2 | 3 | 4 | 5 |
8. Details of transfer of Cenvat Credit for registered person having centralized registration under existing law (Section 140(8))- This part is for those persons who, were having centralized registration under Pre-GST regime. Carried forwarded Cenvat Credit in return furnished under Pre-GST regime for the period ending on 30th June, 2017 shall be available as credit in GST regime. Such credit may be transferred to any of the registered persons having the same Permanent Account Number for which the centralized registration was obtained. Following details are required under this part-
Sl 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 No. Date transferred |
|
No. |
Date |
|||||||
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
9 |
9. Details of goods sent to job-worker and held in his stock on behalf of principal under section 141- This part is applicable to those persons who are registered under GST, acting as job-worker/principal and where inputs/semi-finished goods/excisable goods is lying with job-worker on behalf of principal. This section is only for declaration of goods and not claiming any transitional credit. By declaration of such goods, principal and job-worker both can get relief of no taxation of GST on such returned goods subject to some conditions.
9(a). Details of goods sent as principal to the job worker under section 141- This part is to be filled by the principal mentioning details of goods lying with all job-workers on his behalf as on 30th June, 2017 as required below-
| Sr. No. | Challan No. | Challan date | Type of goods (inputs/ semi-finished/ finished) | Details of goods with job- worker | |||||||||
| HSN | Description | Unit | Quantity | Value | |||||||||
| 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | |||||
| GSTIN of Job Worker, if available | |||||||||||||
9(b). Details of goods held in stock as job worker on behalf of the principal under section 141- This part is to be filled by the job-worker, if registered under GST regime mentioning following details of goods lying in stock as on 30th June, 2017 held on behalf of each principal-
| Sr. No. | Challan No. | Challan date | Type of goods (inputs/ semi-finished/ finished) | Details of goods with job- worker | ||||||||||
| HSN | Description | Unit | Quantity | Value | ||||||||||
| 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | ||||||
| GSTIN of Manufacturer | ||||||||||||||
10. Details of goods held in stock as agent on behalf of the principal under section 142 (14) of the SGST Act- This part is applicable to those persons who are registered under GST, acting as an agent/principal and where goods/capital goods is lying with agent on behalf of principal. As per Sec 142(14) of SGST Act, agent can avail credit of the tax paid on goods or capital goods lying with such agent on 30th June, 2017 when principal and agent both declare details of stock of goods and capital goods and principal has either reversed or not availed input tax credit in respect of such goods or capital goods issued within 12 months immediately preceding appointed day. This part is further divided in two parts-
10(a). Details of goods held as agent on behalf of the principal- This part is to be filled by an agent, mentioning details of goods lying in stock as on 30th June, 2017 held as an agent on behalf of each principal as required below-
| Sr. No. | GSTIN of Principal | Details of goods with Agent | ||||
| Description | Unit | Quantity | Value | Input Tax to be taken | ||
| 1 | 2 | 3 | 4 | 5 | 6 | |
|
|
||||||
10(b). Details of goods held by the agent- This part is to be filled by the principal mentioning details of goods lying in stock as on 30th June, 2017 with his agents on his behalf.
| Sr. No. | GSTIN of Principal | Details of goods with Agent | ||||
| Description | Unit | Quantity | Value | Input Tax to be taken | ||
| 1 | 2 | 3 | 4 | 5 | 6 | |
11. Details of credit availed in terms of Section 142 (11 (c ))- This section is for those work contractors who have paid both taxes- VAT and Service tax on supply. Credit of VAT/Service Tax paid under old regime shall be available to the extent of supplies made after the appointed day. Following details are required to be given to claim said credit-
| Sr. no | Registration No of VAT | Service Tax Registration No | Invoice/document no. | Invoice/ document date | Tax Paid | VAT paid Taken as SGST Credit or Service Tax paid as Central Tax Credit |
| 1 | 2 | 3 | 4 | 5 | 6 | 7 |
12. Details of goods sent on approval basis six months prior to the appointed day (section 142(12))- This section is not for those who are claiming any transitional credits rather, it is a statement of goods sent on approval basis under Pre-GST regime within 6 months from appointed day. Following details are required to be mentioned in this part.
Sr No. |
Document no. |
Document date |
GSTIN no. of recipient, (if applicable) |
Name & address of recipient |
Details of goods sent on approval basis |
||||
HSN |
Description |
Unit |
Quantity |
Value |
|||||
| 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
Conclusion–
One should ensure that all the required details have been mentioned accurately. Due date of filling this form, is now extended to 31st December, 2017. One time revision option is also made available till this date. This form is of very much importance to get benefits of transitional credits. Transitional provisions are given under section 139 to Section 142 of CGST Act and respective SGST/UTGST Acts.
Author Bio
sir
while filing TRAN1 ientered amount of rs.25784/ in 7(d) by oversight i reversed that amount in march2019
in 3b return and also inform you that amount is notcredited in the ledger however the dept.issued
SCNwith DRC-01 saying that you have claimed in TRAN1 KINDLY ADVISE JAYARAMAN