GST TRAN 1 FAQ
Transition Form GST TRAN – 1
1. What are Transitional Provisions?
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 TRAN – 1 and TRAN – 2.
[ Download TRAN 1 Format ]
2. Why do I need to file transition Form GST TRAN – 1?
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.
3. What do I need to do to submit the transition Form GST TRAN – 1?
You need to login to the GST Portal and navigate to Services > Transition Form > TRAN – 1. Fill the form and then you need to submit, file the form attaching DSC/ EVC.
4. By when do I need to file the transition Form GST TRAN – 1?
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.
5. Can I make any amendment to the transition Form GST TRAN – 1?
There is no provision for revision or amendment of details furnished in transition ‘Form GST TRAN – 1. However, different table of transition form can be furnished at different points of time till the stipulated last date.
6. Do I need to attach any document along with transition Form GST TRAN – 1?
There is no requirement for uploading any documents as an attachment along with transition Form GST TRAN – 1. Wherever details are beyond a limit the same will be uploaded to the portal through an Offline Utility tool.
7. I am registered as composition taxpayer. Do I need to submit the transition form?
Transition Form is not to be submitted by the taxpayer registered as composition taxpayer under GST Law. Also, Transition form will not be displayed to the composition dealer.
8. What will happen once the transition Form GST TRAN – 1 is filed?
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 GSTIN mentioned in the form.
9. What will happen if the transition Form GST TRAN – 1 is submitted but not filed with DSC/EVC?
Credit claimed in TRAN – 1 gets credited to the taxpayer’s credit ledger on successful submit of the TRAN – 1 form, however filing of the form with prescribed electronic signature is necessary for subsequent utilisation of the credit. GSTR-3B cannot be filed if the same credit is utilized for payment of liabilities declared therein unless until the 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 TRAN – 1.
10. What is the correlation of various sections of the CGST Act and sections of the GST Form TRAN – 1 for availing credit?
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
Section 140(1) and 140(4)(a) of CGST Act
Amount of tax credit carried forward in the return filed under existing laws
Section 140(2) of CGST Act
Details of capitals goods for which unavailed credit has not been carried forward under existing law (section140 (2))
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)
Section 140(8) of CGST Act
Details of transfer of cenvat credit for registered person having centralized registration under existing law (Section 140(8))
Section 141 of CGST Act
Details of goods sent to job-worker and held in his stock on behalf of principal under section 141
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
Section 142(11)(c ) of CGST Act
Details of credit availed in terms of Section 142 (11 (c ))
Section 142(12) of CGST Act
Details of goods sent on approval basis six months prior to the appointed day (section 142(12))
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