Transition provisions under GST law address three key issues

Transition of Registration:

• Any dealer who is registered under Stale VAT, Central Excise, Service tax etc having a valid PAN shall he given provisional registration.
• Dealers who have been given provisional registration would he given final registration on submission of prescribed documents.

Transition of credit of Central taxes paid on goods in stock:

• A manufacturer having an existing registration can carry forward his Cenvat credit as CGST Credit. He is also entitled to take balance of Cenvat Credit on capital goods.
• A dealer who was not registered earlier or a first Stage or a second stage deafer can take cenvat credit paid on inputs, if he has invoice or any other document such as Credit Transfer Document evidencing payment of Central Excise duty on the stock.
• Credit Transfer Document can he issued by a manufacturer for goods having value of more than Rs 25000/- per item, bearing the brand name of the manufacturer, if verifiable inventory and supply chain records are maintained.
• A dealer who was not registered earlier, can take input lax credit of 60% of CGST paid where the CGST rate is 9% or more and and 40% of CGST paid in other cases for a period of six months, on stocks which were not unconditionally exempted earlier but no Cenvat paying document is available.

Transition of cretin of State taxes paid on goods in stock:

• A dealer can claim balance input credit of VAT reflected in the return subject to submission of prescribed information. He is also entitled to take balance of VAT credit on capital goods.
• A dealer who was not registered earlier can claim credit of VAT paid on stock at hand on the basis of purchase invoice of goods in stock.
• Credit in relation to stock received in inter-State sale is subject lo submission of information regarding value and serial number of farms E, H etc.

Credit on goods In transit:

• Credit of both Central and State taxes paid on goods in transit on the day of the transition i.e. 01-07^.2017 is available on the basis of duty paying documents.

Transition without double taxation:

• No tax is payable on supply of goods and services under GST to the extent the tax was paid on such supply under the earlier law.
• No tax is required to be paid on return of goods within six month where taxes were paid and goods removed prior 01-07-2017.
• No tax shall be payable on return of goods from job-worker to the principal within six months, where the goods were Sent for job work before 01-07-207.