FAQs on Transition Form GST TRAN-1

Q.1 What are Transitional Provisions?

Ans: As per the transitional provisions of CGST/ SGST/ UTGST Act, registered person can take credit of taxes or duties paid under existing State or Central laws, like Value Added Tax Act, Central Excise Act and Service Tax laws and carry them forward to the GST regime, if the same are eligible as CGST/SGST/UTGST credit, subject to conditions/ limitations as prescribed in the GST Act and rules. These transitional credits can be claimed through Form GST TRAN – 1 and TRAN – 2.

Q.2 Why do I need to file transition Form GST TRAN – 1?

Ans: Every registered person who is eligible to take credit of eligible duties and taxes paid under existing laws in respect of input or input services or capital goods in his/her Electronic Credit Ledger, needs to file a declaration in Form GST TRAN – 1 within 90 days + extended days of the appointed day (1st July 2017).

After successful filing of transition Form GST TRAN – 1 online, the credit will be credited/posted to their Electronic Credit Ledger and can be utilized for discharge of liabilities under GST regime.

Q.3 What do I need to do to submit the transition Form GST TRAN – 1?

Ans: You need to login to the GST Portal and navigate to Services > Transition Form > TRAN – 1. Fill the form and then you need to file the form attaching DSC/ EVC.

Q.4 By when do I need to file the transition Form GST TRAN – 1?

Ans: Transition Form GST TRAN – 1 has to be filed within <90 days > from the appointed day (1st July 2017). The time limit can be extended by another 90 days by the Commissioner on the recommendation of GST Council.

The due date for filing Form GST TRAN-1 has been extended to 27th December 2017.

Q.5 Can I make any amendment to the transition Form GST TRAN – 1?

Ans: A one-time revision provision is being made available for taxpayers who have either submitted or filed their Form GST Tran-1. However, the details of transfer of cenvat credit for registered person having centralized registration under existing law (Section 140(8)) as declared in previous submission can-not be revised downwards. However, you may transfer more credit if applicable.

Q.6 Do I need to attach any document along with transition Form GST TRAN – 1?

Ans: There is no requirement for uploading any documents as an attachment along with transition Form GST TRAN – 1. However in some sections data can be uploaded to the portal through using Offline Utility tool.

Q.7 I am registered as composition taxpayer. Do I need to submit the transition form?

Ans: Transition Form is not required to be submitted by the taxpayer who is registered as composition taxpayer under GST Law. Moreover, Transition form will not be displayed to the composition dealer.

Q.8 What will happen once the transition Form GST TRAN – 1 is filed?

Ans: Once the transition Form GST TRAN – 1 is successfully filed, ARN is generated and transition credit will be credited to the Electronic Credit Ledger of the taxpayer and same can be utilized by taxpayer for offsetting the tax liability in GST regime.

Q.9 What will happen if the transition Form GST TRAN – 1 is submitted but not filed with DSC/EVC? 

Ans: Credit claimed in TRAN – 1 gets credited to the taxpayer’s credit ledger on successful submit of the Form GST TRAN – 1, however filing of the form with prescribed electronic signature is necessary for subsequent utilisation of the credit. Moreover, Form GSTR-3B cannot be filed if the credit is utilized for payment of liabilities declared therein, unless TRAN – 1 is filed. After submit, the taxpayer cannot change any entries of the TRAN – 1, hence the declaration need to be thoroughly checked before submitting.

Q.10 What is the correlation of various sections of the CGST Act and sections of the GST Form TRAN – 1 for availing credit?

Ans: Please refer to following table for correlation of the various sections of the CGST Act and sections of the GST Form TRAN – 1.

Section of the GST Form TRAN 1 Relevant section of CGST/ SGST Act Headings
Table 5 Section 140(1) and 140(4)(a) of CGST Act Amount of tax credit carried forward in the return filed under existing laws
Table 6 Section 140(2) of CGST Act Details of capitals goods for which unavailed credit has not been carried forward under existing law (section140 (2))
Table 7 Section 140(3), 140(4)(b), 140(5) and 140(6) of CGST Act Details of the inputs held in stock in terms of sections 140(3), 140(4)(b), 140(5) and 140(6)
Table 8 Section 140(8) of CGST Act Details of transfer of cenvat credit for registered person having centralized registration under existing law (Section 140(8))
Table 9 Section 141 of CGST Act Details of goods sent to job-worker and held in his stock on behalf of principal under section 141
Table 10 Section 142(14) of SGST Act Details of goods held in stock as agent on behalf of the principal under section 142 (14) of the SGST Act
Table 11 Section 142(11)(c ) of CGST Act Details of credit availed in terms of Section 142 (11 (c ))
Table 12 Section 142(12) of CGST Act Details of goods sent on approval basis six months prior to the appointed day (section 142(12))

Q.11 I am getting an error message – “Processed with error” when I am saving the details of the existing registration while claiming transitional credit in the TRAN-1 form. What should I do now?

Ans: You can get error message as “Processed with error” while saving the details of existing registration in the Form TRAN-1.

During Enrolment/ Registration, you were given an opportunity to enter details of the existing registration. In case the details of existing registration in TRAN 1 do not match the details of existing registration entered in the Registration/ Enrolment application, Business Details tab, the error is displayed.

Credit Carried Forward (Central Tax) - Add

In case you face the error, you need to include the existing registrations in your Enrolment/ Registration details using the non-core amendment facility and then file TRAN-1 to claim the transitional credit.

While filing the application of non-core registration amendment, you MUST take care of the following at the relevant places in the Registration application:

1. Do not use special characters (-, /) while adding Service Tax No./ Central Excise No./ VAT/ TIN on the Business Details Tab.

2. Do not give duplicate e-mail or phone number for Promoters/ Partners or Authorized Signatories.

3. Check that the Service Accounting Code (SAC) provided during migration has been provided as per new service codes (and not the earlier ones).

4. Ensure that all the mandatory fields are filled and not blank.

5. Ensure that the STD code is entered correctly in the field provided and it is not entered in the field for entering the local Telephone number.

Q.12 What is Re-open button?

Ans: Re-open button is given only for those users who have either submitted or filed TRAN-1. Re-open functionality can be used only in case of any modification to previously submitted/ filed data or for adding missing records.

Currently this option would be available only for taxpayers who have submitted/filed it before this option was made available i.e. 9th of November, on the GST portal.

Q.13 Can I modify/ delete data in Table-8?

Ans: Downward Modification or deletion of already distributed ITC data in Table-8 is not allowed. Upward modifications of earlier distributions can be done.  But you can Add/ Modify/ Delete data which are newly added after reopening the TRAN-1 Form.

Q.14 What is the limit of entries for table 6a, 6b and 7b in offline mode?

Ans: 10,000 entries is the limit at a time for table 6a, 6b and 7b in offline mode in single upload to GST Portal. In case of more number of records you may upload them sequentially in batches of ten thousand (10000).

Q.15 What is the impact of Tran downward revision to my Credit ledger and Liability Register?

Ans: In case the transitional credit declared in revised Tran-1 is less than Tran-1 credit as declared in previous submission / filing, the delta ITC credit shall be debited from your credit ledger (provided you have sufficient ITC balance in credit ledger).

In case of insufficient ITC balance, the whole amount of downward credit modification from earlier declarations would be included in the next tax period GSTR 3B liability and would be included in the GSTR 3B liability when it gets posted in the liability ledger.

FAQs > Troubleshooting TRAN-1 issues

Do’s

In case due to validation failure, you receive error as “Processed with Error/ Error occurred”, do ensure to rectify those errors before taking any further action. Any record with status Processed with Error is not part of declaration.

All eligible credits as per CGST/SGST acts and rules should be claimed.

Ensure to check that the pre-GST registration number is properly updated before proceeding with filing of TRAN-1. Only pre-GST registration numbers updated in non-core registration fields are allowed to be declared in Tran-1.

In Offline mode, once a JSON file is uploaded in 6a/ 6b/ 7b, do ensure to download error file and rectify records before uploading the 2nd JSON file.

Do scrutinize your eligibility under the old law as well as the new law.

If credit was not admissible under the old law but is available under the GST law, it cannot be carried forward.

Similarly, if credit was admissible under the old law but is not available under the current law, then it too cannot be carried forward.

Ensure that all registrations have been migrated properly. TRAN-1 does not accept credits pertaining to old registrations that were not migrated properly. This means that you have added the earlier registrations in the business details tab in the enrollment form.

Ensure that you do not leave TRAN-1 filing for the last minute.

Use CSV template & Upload functionality if you have large number of records in 5B, 9A and 9B. Please ensure all data that need to be declared is part of last csv uploaded on portal as csv data is overwritten with each successful upload.

Use Excel Macro Tool & Upload functionality if you have large number of records in 6A, 6B and 7B. You can upload multiple times while uploading in these tables.

Table 5(a) is for claiming credit of excess central taxes ITC (excise and service tax) which have to be carried forward as Central Tax in GST. You would be required to mention the Excise or Service Tax Registration Number. Select the tax period for which last return is filed and date of filing of last return has to be mentioned. Balance amount which was carried forward in last return has to be specified. Out of that amount, you have to mention how much amount is admissible as ITC in GST as Central Tax Credit. Please also reclaim any Cenvat credit reversal on account of non-payment of consideration done under earlier Service Tax laws in this table.

Table 5 (b) is for persons who are registered under VAT and CST and would be required to fill details of C-form, F-forms and H-forms which are available with the taxpayer. Also, it would be required to fill details such as TIN of issuer, name of issuer, Serial Number of such Form, Amount and VAT rate as applicable.

Table 5 (c) is for claiming credit of State taxes (VAT) which have to be carried forward as credit of State/UT Tax in GST. Here, one has to fill VAT registration number and mention the amount of ITC remaining in last VAT return.

It is also required to fill turnover for which C forms and F forms are pending along with difference tax payable thereon. The amount of ITC which has been reversed earlier for the pending F forms or C forms also needs to be declared.

One has to fill exact transition credit of ITC which has to be claimed as State Tax under GST after deduction amount liable to be reversed.

Conditions to claim ITC:

A registered person can be a manufacturer or a provider of the exempted goods and/or services, works contractors availing abatement under 26/2012-ST, first or second stage dealer, a registered importer, depot of a manufacturer, or a person who is currently not liable for registration.

  • The registered person shall be entitled to take in the inputs in finished goods held in the stock on the appointed day, inputs on the semi-finished goods, ECL, eligible credits on inputs.
  • The entitlement in case of finished goods will be subject to the following conditions:
    • The stock is to be used for making supplies that are taxable under this Act
    • The person is eligible to take ITC on inputs under this Act
    • The person should have the invoice or the prescribed documents
    • These documents or invoices should not have been issued earlier than 12 months from 1st July

The supplier of the service is not eligible for abatement under this Act

Do remember below things for Transition to GST:

– Transition forms must be filed for each GSTIN separately.

– Any credit that you want to carry forward from the old regime must be eligible credit under GST as well.

– Accumulated credits of old regime can be taken to GST. This is allowed only when you have filed past six months returns under the old regime. So you must file old returns of VAT/ Excise/ Service Tax properly.

– Any central taxes and duties such as Excise and Service tax will be carried forward as CGST

– Any state taxes such as VAT will be carried forward as SGST

Don’ts

Don’t submit TRAN-1 until and unless all details are checked thoroughly before submitting TRAN-1. Once TRAN-1 is submitted, no further changes can be made and you cannot reopen TRAN-1 after submission in case of revision.

All ineligible credits as per CGST/SGST Acts and Rules should be avoided.

Note that there are certain transactions on which credit is not allowed. These include, for example, capital goods in transit on 30 June, where the invoice was issued prior to 1 July, but capital goods were received post 1 July.

Such transactions should be carefully marked and credit should not be taken. Wrong credits in TRAN-1 can invite recovery and penal proceedings under Sections 73/74 of the CGST Act.

(Republished with amendments)

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Disclaimer: The contents of this article are for information purposes only and does not constitute an advice or a legal opinion and are personal views of the author. It is based upon relevant law and/or facts available at that point of time and prepared with due accuracy & reliability. Readers are requested to check and refer relevant provisions of statute, latest judicial pronouncements, circulars, clarifications etc before acting on the basis of the above write up. The possibility of other views on the subject matter cannot be ruled out. By the use of the said information, you agree that Author / TaxGuru is not responsible or liable in any manner for the authenticity, accuracy, completeness, errors or any kind of omissions in this piece of information for any action taken thereof. This is not any kind of advertisement or solicitation of work by a professional.

Source- gst.gov.in

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7 Comments

  1. JAYARAMAN says:

    sir
    while filing TRAN1 i mentioned amount wrongly in
    coll.7(d) and was not credited in the ledger ientered
    correct amount in col.5(c) and was credited in the ledger now the cto saked me to pay whether the 7(d) amount was notcreditedin the ledger or not you
    have shown in TRAN1 PL.ADVISE

  2. DIBYAJIT GHOSH says:

    An assessee claimed ITC of Rs1,00,000/- in GST-TRAN1 instead of Rs. 10,00,000. Can they claimed refund of balance Rs. 9,00,000/- in GST Regime ?

  3. Sandip Choraria says:

    Dealer was having Cenvat Credit under the Central Excise law. he filed TRANS-1 in the month of October 2017 c/f tax amounts at Rs.100000/-. His liability for the period July 17 is say 10000/- which he pays in september through cash ledger. is he liable for interest u/s 50 of CGST.

  4. SUSANTA KUMAR says:

    Sir, I am an employee of a pvt. ltd. company. I have filled the Tran-3 but could not file the form due to problem in DSC. now the site has been locked. What to do. The CTD amount is Rs.6.00Lacs appx.

    kindly suggest.

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