Transitional provisions at the time of switching to GST on 1-7-2017 :
♦ Taxable Persons who are paying service tax, State Vat or Central Excise are required to migrate to GST. They will get temporary PAN based registration number. Final registration will be granted after submitting necessary information and papers – section 139 of CGST Act.
♦ A manufacturer who is having Cenvat Credit balance in his return on 30-6-2017 can carry forward his Cenvat credit as CGST Credit. He can also take unavailed Cenvat credit of excise duty paid on capital goods – section 140(1) and 140(2) of CGST Act. He has to submit application in form GST
TRAN 1 within 60 days.
♦ A dealer or manufacturer who has input tax credit under State Vat or Entry Tax in his return on 30- 6-2017 can carry forward his input tax credit as SGST Credit. He can also take unavailed credit of State Vat paid on capital goods – section 140(1) and 140(2) of SGST Act. He has to submit
application in form GST TRAN 1 within 60 days.
♦ If goods were supplied under CST Act, details of claims and CST forms (C, F, H, I, E-I/E-II shall be submitted within 60 days – proviso to rule 1(1) of Transitional Provision Rules. It seems the provision is for those availing State incentives of refund of CST, since otherwise, input tax credit of Central Sales Tax (CST) is not admissible.
♦ A taxable person who was not eligible to take Cenvat Credit but is now under GST can take input tax credit of excise duty which was paid on the stock with him, if he has Invoice or other documents evidencing payment of excise duty. He has to submit stock statement – section 140(3) of CGST Act.
♦ A taxable person who was not earlier under Central Excise but is now under GST and does not have excise duty paying documents evidencing payment of excise duty, can take input tax credit of 40% of CGST payable by him. He takes credit when he sales this stock after 1-7-2017 by charging CGST. He can sale old stock upto six months. He has to submit stock statement and submit statement in form GST TRAN – – proviso to section 140(3) of CGST Act.
♦ A taxable person who was not earlier under State Vat but is now under GST can take input tax credit of State Vat which was paid on the stock with him, if he has tax invoices or other documents evidencing payment of State Vat. He has to submit stock statement – section 140(3) of SGST Act.
♦ A taxable person who was not earlier under State Vat or was under composition scheme but is now under GST and does not have documents evidencing payment of State Vat, can take input tax credit of 40% of SGST payable by him. He takes credit when he sales this stock after 1-7-2017 by charging SGST. He can sale old stock upto six months. He has to submit stock statement and submit statement in form GST TRAN – – proviso to section 140(3) of SGST Act.
♦ If goods were cleared by supplier prior to 1-7-2017 by paying excise duty and State Vat but goods were received after 1-7-2017 by recipient, input tax credit of such excise duty or State Vat is available if such invoice was recorded in books of account within 30 days i.e. before 30-7-2017. He has to furnish specified details – section 140(5) of CGST Act and SGST Act.
♦ If material was sent for job work and was lying with job worker, input tax credit can be taken on submission of details – section 141 of CGST Act and SGST Act.
♦ If goods were sent on approval basis and were not with the taxable person on 1-07-2017, details are to be submitted in form GST TRAN-1.