GST Transitional Forms

  • Contributed by CA Vikas Parakh, Kolkata

    GST Transitional Forms

    At present the need of the hour under the GST regime is the availability of INPUT TAX CREDIT to the registered person on 1st July 2017 and the procedure to claim such ITC under the GST regime.

    Section 140 to 142 under the CGST Act 2017 and respective sections under SGST laws along with Rule 117 to 121 under the GST Transitional Provisions Rules determines the availability and procedure to claim carry forward of ITC to the GST regime.

    Forms GST TRAN-1, GST TRAN-2 &GST TRAN-3 has been prescribed to be filed under GST to avail such ITC.

    FORM TYPE Who can File Who cannot File Due Date
    TRAN-1 Registered persons under GST, may be registered or unregistered under existing law Those registering under GST as composition dealer 31st October 2017
    TRAN-2 A dealer or trader who does not have duty paid documents and is claiming deemed credit A Manufacturer or service provider. Monthly for the period of July 2017 to December 2017

    Credit Carried Forward through Existing Returns under GST

    Key Points

    • CENVAT Credit available under Excise/Service Tax shall be carried forward as CGST and VAT credit as SGST

    Information to be submitted in TRAN-1 : Table 5

    Balance of VAT/CENVAT credit carried forward in the VAT/Excise/Service Tax Returns submitted for the period ending 30th June 2017.
    Details of Forms C/H/I/F received and/or pending need to be given in case of VAT credit carried forward pertaining to such forms.

    • VAT Credit (if any) pertaining to pending forms will not be carried forward and refund of such credit may be claimed under earlier law.

    Key Points
    • Allowed to registered taxable person
    • Unavailed credit on capital goods can be claimed under GST subject to the condition that
    • – The credit was admissible under the earlier law and
    • – The credit is admissible under GST
    • No time limit in respect of date of invoice for capital goods

    Information to be furnished in TRAN-1 : Table 6
    Central Tax – Details regarding the invoices and suppliers as well as assessee’s registration number shall be provided. Also the amount of eligible duties and taxes such as ED/CVD & SAD shall be given. Cenvat Credit availed and un-availed under the existing law shall also be provided.

    State/UT Tax – Same details as given above shall be given considering the duties and taxes amount shall be carried forward as State Tax.

    Credit of Duties and Taxes on Stock held on 30th June 2017

    Key Points

    • Credit of eligible duties & taxes on stock held as inputs, semi-finished or finished goods can be claimed subject to specified conditions
    • Credit in respect of stocks allowed only in respect of purchases made on or after 1.7.2016
    • Person taxable under GST not liable under the earlier law eligible for credit in respect of inputs held in closing stock if duty paid invoice/ document is available
    • Traders will be allowed deemed credit of excise duty lying in stock as on date of transition even if not in possession of duty paid documents, provided such stock is sold prior to 31.12.2017
    • In case of deemed credit – Anti profiteering clause included which requires supplier to pass on benefit of additional credit received to final consumer

    Information to be furnished in TRAN-1 : Table 7

    • HSN
    • Unit Quantity Code (UQC)
    • Quantity
    • Value
    • Eligible duties paid on such inputs (Not required in case of deemed credit claim)
    • Where duty paid invoices are available – Select Yes or No
    • Type of Goods – Inputs, Semi-Finished or Finished Goods

    Goods / Services in Transit

    The eligible duties and taxes paid on goods and services under pre GST regime but received after the appointed date under post GST regime (being Stock in Transit) shall be available as GST credit provided the transaction isrecorded in books within 30 days of the appointed date ( i.e. 30th July, 2017).

    Information to be furnished in TRAN-1 : Table 7

    • Regn. No of supplier/ISD
    • Invoice No and Date
    • Description of Goods
    • Quantity in numbers, UQC & Value.
    • Eligible duties & taxes
    • Date in which entered in books of accounts.

    VAT & Entry Tax Paid – Held in Stock

    Businesses that have not been registered under the existing law but registered under GST and having the stock as on 30th June on which VAT/[ET] has been paid are eligible to claim the Input credit on such stock. Also, the goods held in stock which were exempted in earlier laws are now taxable under GST then on such stock the registered person are eligible to claim Input Credit.

    In earlier VAT regime, if the person opted for composition scheme and now they are registered as regular tax payer under GST regime then he may claim input credit on stock held as on 30th June.

    Remark: WB VAT ACT doesn’t allow the credit of Entry Tax [ET] paid.

    It is to be noted that the credit in cases where dusty paying documents are available shall be credited immediately to the electronic credit ledger, but in case of deemed credit, the credit will be credited on a monthly basis after filing of GST TRAn-2

    Goods lying as on 30th June 2017

    – with Job Worker/ as Job Worker
    – with Agent/ as Agent
    – on Approval basis

    Information to be furnished in TRAN-1 : Table 9, 10 & 12 – as applicable

    • Challan details
    • Type of Goods (Input/Semi-Finished/Finished)
    • HSN
    • Unit


     The details of stocks sold during the period 1st July 2017 to 31st December 2017 need to be given in Tran -02 on monthly basis to claim the deemed credit of CGST.

     The credit claimed should be passed on to the customer.

     The credit claimed in Tran – 02 shall be credited in the Electronic Credit Ledger.

     The stock of goods on which the credit is availed shall be so stored that it can be easily identified by the registered person.

    Views presented in this article are personal view of the author. Information presented in this article is intended for information purpose only and does not constitute any legal opinion or advice. Readers and Users are requested to seek formal legal advice prior to acting upon any of the information provided herein.