Only few days left to file the TRAN-2 form. TRAN-2 statement filing has now been extended to 31st March 2018 vide Notification No.12/2018 – Central Tax dated : 7th March 2018 to declare Closing stock of goods as on 30th June 2017 that are sold after 1st July 2018 but up to six tax periods, on which Transitional ITC under VAT can be claimed as ITC under GST where the supporting documents are not present. Please Ensure you have filed TRAN-1 before this! The taxpayers need to know some essential points which are often being ignored regarding the form:

1. TRAN-2 form is only for traders.

2. TRAN-2 form is only for traders who were unregistered in VAT.

3. The benefits of credits received are to be passed on by way of reduced pricing. This doesn’t just mean that the benefits are to be passed on, it also means that details of all the tax payers who have filed this form will be sent to the Anti- Profiteering Committee and the tax officials will surely pay you a visit if it is a substantial amount.

4. The document of procurement is required to avail the credit. This document may or may not be a tax invoice under previous tax laws.

The form TRAN-2 should be filed very judiciously. The tax payer should determine whether its benefits outweigh its conditions. In case it is found by the authorities that incorrect claims were made then credits will be reversed along with interest. Penalty can also be levied but it will be at the discretion of the officer.

There are many other conditions for TRAN-2 but above points were the ones which I found were being overlooked by tax payers at large.

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Location: Kanpur, Uttar Pradesh, IN
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  1. Annapoorna says:


    Have seen on GST portal that TRAN-1 needs to be filed after which we are supposed to file TRAN-2. Is it so? But hasn’t the TRAN-1 window been closed now? So, will filing of TRAN-2 without TRAN-1 be accepted now?


  2. CA Paresh Khanolkar says:

    TRAN-2 filing is not just for traders who were unregistered under VAT. It is for dealers who were unregistered under the earlier law i.e. VAT OR Central Excise OR both. Please correct that statement.

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October 2021