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STEP BY STEP GUIDELINES FOR FILING GST RETURN TRAN-1

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STEP BY STEP GUIDELINES FOR FILING GST RETURN TRAN-1

 

INTRODUCTION :-

A major concern for businessmen registered under GST is to avail Tax Benefit & Input Credit of Old Regime . In order to avail such benefit , a registered person is required to file TRAN – 1 Within 90 days ( 28th Sep 2017 )of the appointed day ,that is 01 July 2017.

Those who desirous of availing  such credits for tax payment for the month of f July 2017, need to furnish TRAN -1 before filing Form 3B . For such person , date of furnishing TRAN 1 is 28th Aug 2017.

 

Step by step guidelines for filing of TRAN 1 according to dashboard of GSTN Portal will be certainly  useful for businessmen and other registered person filing this return.

An attempt has been made to present it in easy to understand and self explanatory fashion.

TRAN 1 – TRANSITIONAL ITC / STOCK STATEMENT
TABLE 1..GSTNTABLE 2.  LEGAL NAMETABLE 3. TRADE NAME
(Coloum 1 , 2 & 3 of TRAN 1 will be auto populated on login in GST Portal)
TABLE 4 – .   Whether all the returns required under existing law for the period  of six months immediately preceding the appointed day have been furnishedYes/NO
( A registered person is not eligible for claiming  transitional credit unless the answer for Table 4 above is YES – Sec 140(1)(ii)  of GST Act 2017)
First page of GST Portal indicates the summary content of Table  5 to Table 12 of this Return .Click on each table , which will open the page where all  required details need to be entered.:-
TABLE 5TABLE 6TABLE 7
  5(a) ,5(b),5 (c )                                                Amount of tax credit carried forward6(a) , 6 (b)                   Details of capital goods for which unavailed credit has not been carried forward7(a), 7(b),7(c ) , 7(d)              Details of the inputs held in stock
TABLE 8TABLE 9TABLE 10
(8)                                 Details of transfer of CENVAT Credit for registered person having centralised registration9(a) , 9(b)                    Details of goods sent to job worker and held in his stock on behalf of principal under Sec 14110 (a) 10(b)                          Details of goods held in stock as agent on behalf of the principal under           Sec 142
TABLE 11TABLE 12
(11)                                      Details of credit availed in terms of                            Sec 142 (11) (c )(12)                                       Details of goods sent on approval basis six months prior to the appointed day . Sec 142(12)
The explanatory notes and actions to be taken for each table are enumerated in suceeding paragraphs. The explanatory notes are given as footnote under each table
TABLE 5 –   TAX CREDIT FORWARD IN RETURN FILED UNDER EXISTING  LAW . (Existing law means law which were prevailing in pre GST regime  implementation and subsumed in  GST ie. Service Tax , VAT etc)      .               
TABLE 5 (a) – The details  need to be entered  in following coloums :-
Coloum  1           Registration No. under existing law    ( Central Exice & Service Tax)Coloum 2                              Tax period to which the last return filed under the existing law pertainsColoum 3                            Date of filing of the return specified in coloum 2
Select from drop down window –
Jan-17Feb-17Mar-17DD/MM/YY
Apr-17May-17Jun-17
Coloum 4                             Balance CENVAT credit carried forward in the said last returnColoum 5                           CENVAT Credit admissible as ITC of central tax in accordance with transitional provisions
Admissibility as per Sec 140(1) & 140(4)(a) of GST Act 2017 ( See footnote (i) & (ii)
Note (i)  Section 140(1) of GST Act states that  Registered taxable person shall  be  eligible to take credit of CENVAT CREDIT /VT -ITC carried forward in the return , furnished for the period , immediately preceding the appointed day ( 01 Jul 2017) subject to following conditions :-
                 (i)    The said amount is admissible as ITC under this Act
(ii)    The registered person has furnished the returns required under existing law ( pre GST law ie service Tax , VAT etc) for the period of six months immediately preceding the appointed date (01 July 2017)
(iii)     The said amount of credit does not relate to goods sold as exempted goods under relevant Government Notification in prevailing law at that point of time
  Note (ii)  Section 140(4)(a) states that any registered person who was engaged in supply of goods and services which were exempted  ,in previous tax regime and such exempted goods & services have become taxable under GST Act  , is eligible to take CENVAT creditt . The said  credit can be claimed to the extent of amount carried forward in returns furnished under pre GST Law (ie Service Tax , VAT etc.)
TABLE  5 (b)  DETAILS OF STATUTORY FORMS (‘C’ FORM ,’F’ FORM , ‘H/I’ FORM  RECEIVED FOR WHICH CREDIT IS BEING CARRIED FORWARD:-.
Details in Table 5(b) need to be  entered in following coloums :-
 Coloum 1 – Form Type Coloum 2 – TIN of IssuerColoum 3 – Name of Issuer
Select  from drop down window  – Form C          Form  D or Form H/I
Coloum 4 – Sr. No. of FormColoum 5 –   Amount   Applicable VAT Rate
TABLE  5(c ) AMOUNT OF TAX CREDIT CARRIED FORWARD AS STATE/UT TAX
Details in Table 5(c) need to be  entered in following coloums :-
   Coloum 1                       Reg. No. in existing law        VAT NO..etcColoum 2                            Balance of ITC of VAT and (Entry Tax) in last returnColoum  3                            Turnover for which C Forms are  pending
Coloum 4                            Difference tax payable on C Forms pendingColoum 5                             Turnover for which F Forms are pendingColoum 6                            Difference tax payable on  F Forms pending
See  foot note (i) below
Coloum 7                               ITC reversal relatable to Form C & Form FColoum 8                  Turnover for which Form H/I Forms are pendingColoum 9                Difference tax payable on H/I Forms pending
Coloum 10                           Transition ITC                        Net Eligible ITC)
Coloum  2 -((4+6) – (7+9)) See  footnote (ii)
 Footnote (i) – In pre GST regime , Form C,, F & H/I  were to be issued for concessional tax rate on interstate supply , stock transfer &  Import-export respectively . In case of non avaliability of these concessional forms in respect of business transaction , difference between normal tax rate and concessional tax rate is required to be paid by registered person. This  amount need to be entered in Coloum 4 ,6 & 9 respectively of table 5 c.
Footnote (ii)  –  Coloum 2 indicates CENVAT credit carried forward from pre GST returns , during that period tax person should have availied credit against  Form C, F,& H/I as the case may be ,and still these Forms are not received from buyer  . Credit allowed for these form need to be reversed by indicating ITC reversible amount in coloum 7 . Further , difference between normal tax rate and concessional tax is required to be paid and entered in coloum 4,6,&9.above .Net eligible ITC amount is arrived by  coloum 2- (4+6+9-7) and will be entered in Coloum 10.
TABLE  6 – DETAILS OF CAPITAL GOODS FOR WHICH UNAVAILED CREDIT HAS NOT BEEN CARRIED FORWARD UNDER EXISTING LAW UNDER SECTION  140(2) ,
Sec 140 (2) states that a registered person shall be entitled to take credit on capital goods which was not carried forward in return filed under ealier law or Act..The only condition is that transfered ITC is  eligible as credit both under earlier law as well as under GST.
Unavailed Central tax CENVAT credit in respect of Capital goods .Details required to be entered  in Table 6 (a) under following coloums :-
Coloum 1                               Invoice /Document No.Coloum 2                               Invoice /Document date.Coloum 3                               Supplier’s Registration No. .
Coloum 4                           Recepient’s Registration No. .Coloum  5                               value of capital goods on which credit has been partially availedColoum  6                               Duties and Taxes paid on Invoice value at coloum 5
ED/CVD
Coloum 7                               Duties and Taxes paid on Invoice value at coloum 5Coloum  8                              Total eligible credit under existing law.Coloum 9                              Total CENVAT Credit availed under existing law
SAD
Special Additional Duty)
Coloum 10                               Total CENVAT Credit unavailed under existing law ( admissible as ITC of Central Tax ( coloum 8-9)
TABLE 6(b) UNAVAILED STATE TAX  CENVAT IN RESPECT OF CAPITAL GOODS  .Details required to be entered in Table 6 (b) under  following coloums :-
Coloum 1                               Invoice /Document No.Coloum 2                               Invoice /Document date.Coloum 3                               Supplier’s Registration No.under existing law .
Coloum 4                           Recepient’s Registration No. .under existing lawColoum  5                              Invoice Value of capital goods on which credit is not availed.Coloum  6                               Duties and Taxes paid on Invoice value at coloum 5
VAT & (Entry Tax)
Coloum  7                              Total eligible credit under existing law.Coloum 8                              Total VAT & Entry Tax  Credit availed under existing lawColoum 9                               Total VAT & Entry Tax  Credit unavailed under existing law ( admissible as ITC of State Tax ( coloum 7-8)
       VAT  & Entry Tax
TABLE 7 – DETAILS OF INPUT HELD IN STOCK IN TERMS OF SEC  140(3) , 140(4)(b) and 140(6).
TABLE 7(a) AMOUNT OF DUTIES AND TAXES ON INPUT CLAIMED AS CREDIT . Details requied to be entered under fillowings coloums:-
Coloum 1                               HSN ( at 6 digit level) of input held in stockColoum 2                               Unit of measurementColoum 3                               Qty
Coloum 4                           Value. Of input held in stockColoum  5                              Eligible duties paid on such inputsColoum  6                               Duty paid invoices are avaliable
Yes / NO
Coloum  7                              Types of goodsColoum 8                              Details of inputs  where duty paid invoices are avaliableColoum 9                              Details of inputs  where duty paid invoices are not avaliable
Input
Semi finished
finished goods
Note : If duty paid invoices are not avaliable with the registered person ( other than manufacturer or service provider ) , he can claim credit in terms of Rule 117(4).
TABLE 7 (b) – AMOUNT OF ELIGIBLE DUTIES AND TAXES /VAT/ET IN RESPECT OF INPUTS OR INPUT SERVICES UNDER SEC 140(5)
Sec 140(5) applies where inputs/input services received on or after the appointed day whereas the applicable duty/tax paid by the supplier under the earlier law . CENVET credit in respect of such inputs shall be eligible subject to condition that invoice or duty paying documents has been recorded in the books of account within thirty days from the appointed day.
Details in TABLe 7b are required to be filled in following coloums :-
Coloum 1                               Name of SuppierColoum 2                               Regd No. of supplierColoum 3                               Invoice No.& Date
Coloum 4                           DescriptionColoum  5                              QuantityColoum  6                               UQC
Coloum 7                               ValueColoum  8                              Eligible duties & taxesColoum 9                              VAT(ET)
Coloum 10                               Date on which entered in recepients books of account
TABLE 7 (c ) – AMOUNT OF VAT AND ENTRY TAX PAID ON INPUTS SUPPORTED BY INVOICES /DOCUMENTS EVIDENCING PAYMENT OF TAX UNDER SEC 140(3) , 140(4)(B) AND 140(6) .
Section 140(3) states that any registered person who was engaged in manufacturing of exempted goods or provision of services &  work contracts and said goods and services which have become taxable under GST  Act ,is  eligible to claim ITC in respect of  tax paid amount included in value of raw material stock ,work In Progress or final products as on the date immediately preceding the appointed date( As on 30th June 2017).

Section 140(4)(b) states that any registered person who was engaged in manufacturing of exempted goods or provision of services &  work contracts and said goods and services which have become taxable under GST  Act ,is  eligible to claim ITC in respect of tax paid amount included in value of stock in  semi finished or finished goods  as on the date immediately preceding the appointed date. (30 June 2017)

Section 140(6) states that any registered person who was paying tax in the capacity of composite tax payer at a fix rates and become  regular registered person  ,is  eligible to claim ITC in respect of tax paid  amount included in  in stock , WIP or in final products   as on the  appointed date. (30 June 2017)
Details of such payments required to be filled in following coloums :-
Coloum 1                               Description of inputs in stockColoum 2                               UnitColoum 3                               Quantity
Coloum 4                           ValueColoum  5                              VAT ( ET) PaidColoum  6                               Types of goods
Inputs
Semi finished
Finished
Coloum 7                               Totla input tax claimed under earlier yearColoum  8                              Total input tax credit related to exempted sales not claimed under earlier lawColoum 9                              Total Input Tax credit admissible as SGST/UTGST
TABLE 7(d)  – STOCK OF GOODS NOT SUPPORTED BY INVOICES /DOCUMENTS EVIDENCING PAYMENT OF TAX  .
Details of input in stock are required to be provided in following coloums:
Coloum 1                         Number

Coloum  2                              Description of inputs in stock

Coloum  3                               Unit of measurement

Coloum 4                          Qty of inputColoum  5                              Value of input in stockColoum 6                            Tax Paid
CONCLUSION :-   In conclusion , the approach adopted above is to put in place the procedure to be followed , the governing sections and the methology to be adopted to avail Transitional credit  while magrating prevailing Tax regime to GST regime . Care has been taken to avoid complicated terminologies and legalis , so that the reader of this article understand the concept easily.

gst trans 1

ANITA BHADRA

ANITA BHADRA (AUTHOR)