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Clarifying TRAN-1

CA Rashmi Gandhi 
on 28 August 2017

LinkedIn


Tax credit carried forward in the return filed under existing laws [Column 5a,5b,5c]

Confirm that you have submitted ALL the returns required under existing law for past 6 months- Answer is in the form of Yes/No. The closing balance of CENVAT/VAT credit of past returns can be taken as a credit in your GST electronic ledger only when you have filed returns for the previous six months under the old regime. 

5 a) Amount of cenvat credit carried forward to the electronic credit ledger as central tax (Central Excise and Service Tax) Section 140(1) and Section 140(4)(a).

In this table is required to be filed if you are registered as manufacturer or as a Service provider & if you have closing balance of CENVAT credit in your return for the period ending 30th June 2017 

Applicable For:

1. A registered person under old regime other than a person paying tax under composition scheme and has furnished the returns under the old regime

2. Where the registered person was providing/manufacturing both taxable as well as exempted service/goods under the old regime, ITC related to taxable supply.

Available ITC:

1.  Excise Credit in Return
2. Service Tax ITC in Return

Details  to be provided:-

1. Serial No 
2. Provide your central excise and service tax registration number (both are unique 15 digit number)
3. Give the period of the last return filed by you in last 6 months.
4. Date of filing of the return 
5. Amount of CENVAT credit you have carried forward from above mentioned return 
6. Provide amount of credit that you are eligible to carry forward out of the credit appearing in old return forms(Not eligible for ITC in respect of goods exempted in GST)

5 b) Tax credit for C Forms, F Forms and H/I Forms which you want to carry forward
[This information is to be provided for the period 1st April 2015 to 30th June 2017]

For each of these forms provide the following information -

TIN of Issuer
Name of Issuer
Serial Number of Form
Amount
Applicable VAT Rate

5 c) Tax credit for State/UT Tax for pending C Forms, F Forms and H/I Forms (For all registrations on the same PAN and in the same State) - If you are registered under any State VAT & if you have any pending C-Form/F Form/H or I Form then you are required to pay the differential tax as you are not eligible to charge concessional CST rate.Such Differential tax payable will be deducted from the input tax credit balance available in the last return filed by you & the remaining credit will be carried forward under GST Regime. 

The details to be provided are as under - 

  1. In column 1 mention the registration number under State VAT i.e the TIN
  2. In column 2 state the closing balance of the input tax credit in the return filed for the period ending on 30th June 2017.
  3. In column 3 , 5 & 8 the Turnover for which the C-Form , F Form & H/I Form respectively are pending must be provided.
  4. In column 4, 6 & 9 the differential tax on its respective Turnover must be entered (Eg: if concessional CST is 2% & VAT is 14.5 % , then the differential tax rate is 12.5% ).This will be deducted from the closing balance of input tax credit in the return & hence will be deducted from Column 2
  5. In column 7 the ITC reversed by you related to column 3 & 5 must be entered.This amount will be eligible to be carried forward as ITC under GST & hence will be added to the amount in column 2
  6. Column 10 is calculated as follows :- Column No 2 - (4+6-7+9).This is the balance ITC of VAT/Entry tax that will be transferred to you under GST regime.

Details of capital goods for which unavailed credit has not been carried forward under existing law [Column 6]

Applicable For: Credit of taxes paid on capital goods is usually spread over more than one financial year & credit was not carried forward in a return of the old regime 

Available ITC: Any unavailed input credit pertaining to capital goods.

This information has to be provided under 6a.and 6b. below 

a) Central Tax portion of unavailed input tax credit on capital goods

Amount of unavailed cenvat credit for capital goods which you want to carry forward to electronic ledger as central tax, which is for CENVAT or Excise, or Countervailing Duty or Special Additional Duty (Central Taxes) 

In this table you have to give the details of unavailed cenvat credit of Excise Duty or SAD or CVD of Capital goods - 

  1. In column 2 & 3 provide the Invoice number & date of the capital good.
  2. The supplier’s registration number as per old regime, under excise which is the ECC number must be provided in column number 4
  3. In column 5 give your registration number which is either the service tax registration number or the ECC number
  4. In column 6 provide the value of the capital good, in column 7 the Excise Duty or the CVD paid & in column 8 the SAD paid.
  5. In column 9, enter the CENVAT Credit which was eligible under the old regime. This amount cannot exceed the Total of Column 7 & 8.
  6. The CENVAT Credit already availed under the old regime must be provided in Column 10. Such amount cannot exceed the value in Column 9.
  7. The balance unavailed CENVAT Credit i.e Column No 9 minus Column No 10 is the remaining or the balance CENVAT Credit eligible as ITC of Central Tax which is reflected in Column No 11.

b) State/UT Tax portion of unavailed input tax credit on capital goods

Amount of unavailed input tax credit carried forward to electronic credit ledger as State/UT tax (for all registrations on the same PAN and in the same state) -

In this table you have to provide details of unavailed cenvat credit of VAT Or Entry Tax (State/UT Tax)for capital goods- 

  1. In Column 2 & 3 provide the invoice number and date of the capital good.
  2. The supplier’s registration number under relevant State VAT i.e. the TIN Number must be provided in Column 4
  3. In Column 5 your (recipients’) registration number must be provided. Enter your VAT registration which is your TIN
  4. In column 6 provide the value of the Capital Good ,in column 7 the VAT or the entry tax paid on the capital good.
  5. In column 8 , enter the total VAT and entry tax credit which was eligible under the relevant State VAT Act. This amount cannot exceed the Total of Column 7.
  6. The Total VAT/entry tax credit already availed under the ols regime must be provided in Column 9. Such amount cannot exceed the value in Column 8.
  7. The balance unavailed credit of VAT & entry tax i.e Column 8 minus Column No 9 is the remaining or the balance State VAT/Entry Tax credit admissible as SGST/UTGST in GST Regime which is reflected in Column 10

Details of inputs held in stock in terms of section 140(3), 140(4)(b) and 140(6) [Column 7]

Applicable For:-

1. Registered Person in GST but

  1. Not required to be registered under the old regime 
  2. Manufacturing  exempted goods(Also applies for exempted portion if both exempted & taxable services provided or both exempted & taxable goods manufactured.)
  3. Providing exempted services
  4. Providing works contract service and was availing abatement
  5. A first-stage dealer or a second stage dealer 
  6. A registered importer 
  7. A depot of a manufacturer.

2. Person registered as a composition dealer in old regime, but a normal registered taxpayer under GST.

3. Person wants to take deemed credit of excise.(Also required to fill TRAN-2)

Conditions:

  1. such stock is used or will be used for making taxable supplies under GST
  2. The input credit is eligible under GST
  3. They have invoice or other documents evidencing payment of duty under the old regime for such inputs;
  4. These invoices or documents are not more than 12 months old counting backwards from 30th June 2017
  5. The services provider is not eligible for any abatement under GST
  6. They have not opted for composition scheme

Details to be given 

a) Part 7A is Where duty paid invoices or other documents are available to be filled for inputs or for inputs contained in semi-finished and finished goods by a manufacturer or service provider to claim input tax credit of excise duty or service tax as input tax credit of CGST

Part 7B is to be filled only by those who are not manufacturer or service provider who was unregistered in the old regime - basically to be filled by dealers or traders to provide information of Inputs where duty paid invoices or documents are not available. Such a person also has to fill TRAN-2 which we will also discuss.

b) VAT and entry tax paid on inputs or input services where documents of payment of tax are available and which will be carried forward as SGST/UTGST: Where input or input services are received on or after the 1st july 2017 but the duty or tax on the same was paid by the supplier under the old regime. 

Registered person can take credit of eligible duties and taxes paid by them when the invoice has been recorded in the books within 30 days from 1st July. (The period can be extended by the Commissioner GST by another 30 days).

This situation is covered under section 140(5) of the CGST Act & the following details must be submitted.

  1. The name of the supplier must be mentioned in column 1
  2. The invoice number & the invoice date must be filed in column 2 & 3 respectively.
  3. In column 4-7, the details of such supply that is the description, the quantity(if goods), the unit of measurement(if goods), & the taxable value must be provided.
  4. In column 8 the eligible duties must be entered.
  5. In column 9 the VAT/Entry Tax in such goods must be entered.
  6. In the last column, the date of which an entry was made in the books of account of such transaction must be entered. [If it is after 30days (or any extension provided upto 30days) from 1st July then you are not eligible for claiming its input credit.]

c) Amount of VAT and entry tax paid on inputs supported by invoices/documents evidencing payment of tax carried forward to electronic credit ledger as SGST/UTGST under section 140(3), 140(4)(b) and 140(6) 

  1. The details of the stock such as the description, unit, quantity of goods held, the value of the goods & the State Tax(VAT or Entry Tax) must be provided in column 1-5
  2. In column 6, the total input tax credit already claimed under the old regime must be entered.
  3. In column 7, the input tax related to exempt sales (old regime) but taxable under GST must be filed.This input tax credit would not have been claimed the old regime & it is eligible now if such goods are taxable or where a composition dealer in old regime is now registering as normal taxpayer.
  4. In column 8 the remaining balance will be eligible as input credit of SGST/UTGST

d) Stock of goods not supported by invoices/documents evidencing payment of tax (for only those states having VAT at single point) -

This portion must be filled if you are trader or dealer who is unregistered under the old regime and where you do not have the invoice or other prescribed documents evidencing payment of VAT/Entry Tax which will be claimed as ITC of SGST after filing FORM GST TRAN - 2.

Please note that a manufacturer or a service provider cannot fill this table. 

Also this applies to states where the VAT need to paid at the single point. (i.e tax is paid by the manufacturer or the importer only ) like in Punjab. 

Details of transfer of cenvat credit for registered person having centralized registration under existing law (Column 8) -

Applicable for:- ITC related to service tax. 

The following details are required

  1. Provide service tax registration number (column 2)
  2. The tax period of the last service tax return ST-3 filed which will be April to June 2017 (column 3)
  3. Date of filing of returns for the period April to June 2017. [Due date for the return is 15th August 2017]. (column 4)
  4. The closing balance of CENVAT credit carried forward in the ST-3 return for April-June 2017.Such credit can be transferred to any of the registered persons with the same PAN for which the centralised registration was obtained in the old regime. (column 5)
  5. The GSTIN of all the branches (receivers) who had the centralised registration under service tax and had the same PAN, to whom the credit is transferred. (column 6)
  6. A document must be issued in order to distribute the credit. The document number must be mentioned in column 7 & the date of such document in column 8.
  7. In column number 9 mention the input tax credit of central tax transferred to each branch.The total of column 9 cannot exceed the total of column 5.

Details of goods sent to job worker and held in his stock on behalf of principal under section141[Column9]

a) Sent as principal

A principal who has sent goods to the job worker must fill-

  1. Provide the GSTIN of the job worker if he is registered under GST.
  2. In column 2 provide the unique no of the challan issued while transferring the goods to job worker & the challan date must be mentioned in Column 3
  3. In Column 4 give the types of the goods - whether it is inputs/semi finished/finished goods
  4. In column 5-9 provide further details the HSN Code of the good held with Job worker, the description , the unit of measurement for eg: kgs , boxes, tonnes , the quantity, and the value of the stock.

b) Held as job-worker

If you are a job worker then you must give details of goods held by you for the Principal in 9 (b) -

  1. Provide the GSTIN of the Principal if he is registered under GST.
  2. In column 2 provide the unique no of the challan issued while transferring the goods to Principal & the challan date must be mentioned in Column 3
  3. In Column 4 give the types of the goods - whether it is inputs/semi finished/finished goods
  4. In column 5-9 provide further details the HSN Code of the good held with Job worker, the description , the unit of measurement for eg: kgs , boxes, tonnes , the quantity, and the value of the stock.

Details of goods held in stock as agent of behalf of the principal under section 142(14) of the SGST Act.[Column 10]

Section 142(14) says that if any goods or capital goods belonging to the principal are lying at the premises of the agent on the appointed day, the agent can take credit of the tax paid on such goods or capital goods when he meets the following conditions:

(i) the agent is registered under GST

(ii) both the principal and the agent must declare the details of stock of goods or capital goods lying with such agent on 30th June 2017

(iii) the invoices for such goods or capital goods had been issued not earlier than 12 months prior to 1st July 2017.

(iv) the principal has either reversed(if any input tax credit claimed by him) or not availed the input tax credit for such goods or capital goods.

a) Details of goods held as agent

If you are an agent then you must give details of Stock held by you on behalf of the Principal  which is unsold as on 30th June 2017 in Serial No 10 (a) -

  1. Provide the GSTIN of Principal in Column 2.
  2. In Column 3-7 give the details of the stock held by you like the  the description , the Unit of measurement for eg kgs, boxes, tonnes , the quantity of held by you & the value of the stock and the input tax on the same to be taken by you.

b) Goods sent as principal held by the agent

If you are a principal then you must give the details of the stock sent by you to the agent & unsold as on 30th June 2017 in Serial No 10 (b) -

  1. Provide the GSTIN of Principal in Column 2.
  2. In Column 3-7 give the details of the stock held by you like the description , the unit of measurement for e.g.: kgs, boxes, tonnes, the quantity held by you, the value of the stock and the input tax on the same to be taken by your agent.

c) Details of credit as per Section 142(11) (c) [Column 11]

This is for works contractor where both VAT & Service Tax is paid by him on any supply, then GST shall be leviable & he shall be entitled to take credit of VAT & Service Tax paid by him to the extent of supplies made after 1st of July 2017. 

Here you are required to give details :

  1. Registration number or TIN (State VAT registration number) in column 1
  2. Service Tax Registration Number in Column 2
  3. Invoice number & Invoice date in Column 4 & 5 respectively.
  4. In column 6 the GST paid by him must be entered
  5. In the last column the VAT & Service Tax paid by him to the extent of supplies made after 1st of July 2017 is claimed as ITC of SGST & CGST respectively

d) Details of goods sent on approval basis six months prior to 1st July 2017 [Column 11]

This is for goods that are sent on approval basis not earlier than 6 months prior to July 1st 2017. Following details are required -

  1. In column 2 the document number on the basis of which the goods are transferred.
  2. In column 3 document date, the date on which the goods are sent.
  3. In column 4, GSTIN of recipient of goods if it is applicable.
  4. In column 5 name & address of the recipient of goods
  5. In column 6-10 - details of such goods like the HSN Code , the description of the goods, the unit for example Kgs/Mtr, the quantity of goods transferred and finally the total value of goods sent.  

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