transitional provisions - prime academyprimeacademy.com/gst/gst-file-003-gst-important transitional...
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TRANSITIONAL
PROVISIONS
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REGISTRATION
Sec Ref
Chapter XXParticulars
139 Migration of Existing Tax Payers
140 Input Tax Credit Transition
141 Job work related Transition
142 Miscellaneous Transition provisions
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Migration of Current Credit
CENVAT Credit as per
Return furnished under earlier law
Electronic CREDIT Ledger
Value Added Tax & Entry Tax
as per Return furnished under earlier law
Immediately preceding appointed
DAY
CGST
SGST
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Migration of Current Credit
Conditions: Only eligible CREDIT under GST to be carried forward
Returns for the last 6 months before appointed date furnished
Goods manufactured / cleared under Exemption Notifications – No Credit
CST forms related compliance could disentitle Credit
SGST details not later than 90 days from said date to be furnished
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Migration of Credit Unavailed
• CENVAT & State VAT Input Credit
• Unavailed under current law
• Mainly Capital Goods (Deferred Input Credit)
• Not disclosed in Returns
• Migrate as CGST & SGST
• Procedure to be prescribed
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Migration of Credit NOT availed
• NOT Liable to Register under earlier law
• Person Eligible for Input Tax Credit (currently)
Manufacture of exempted goods
Rendering Exempted Services
Works Contract (Notn 26 /2012)
Dealer / Importer under Excise
Depot of manufacturer
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Migration of Credit NOT availed…
• Avail Input Tax Credit of duties & taxes on
Inputs lying in Stock
Semi Finished goods in Stock
Finished Goods in Stock
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Migration of Credit NOT availed…
Subject to
Inputs used for making Taxable Supply
Must be in possession of INVOICE / Document
evidencing payment of VAT / Excise
INVOICE must be within 12 months before
Appointed Day (for VAT also)
Supplier of Service not eligible for abatement
under GST
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Migration of Credit NOT availed…
• If not in possession of Document evidencing payment of
Central Excise or
State VAT & Entry Tax
• Avail 40% of the CGST & SGST
• After CGST or SGST is paid
• Available only for Six tax periods
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Migration of Credit NOT availed…
Subject to
Currently, Goods not being wholly exempted or Nil rated
Document of Procurement is available
Submit FORM GST TRAN – for all 6 periods
Such Inventory is identifiable easily
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Migration of Cutoff Invoices
• Invoices for supply of goods or services
• Raised before Appointed Date
• Received after Appointed Date
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Migration of Cutoff Invoices…
Eligible for Credit if,
• Tax charged is paid by Supplier
• Document recorded within 30 days from
appointed date
• Extendable by another 30 days on request
• Furnish Statement (yet to be prescribed)
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Migration of Composition Dealers
• Paying Tax at Fixed Rate or Paying a Fixed Amount in lieu of Tax currently
• Entitled to take Credit Taxes & Duties on
Inputs lying in Stock
Semi Finished goods in Stock
Finished Goods in Stock
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Migration of Composition Dealers…
Subject to
• Goods used for making taxable supply
• Not opting for Compounded Levy
• Eligible for Credit
• In possession of Invoice issued not earlier than 12 months
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Migration of Input Service Distributor
• Overriding clause
• Input Credit on account of Services received prior to appointed date
• Invoice received by ISD post appointed date
• Eligible for Distribution of Input Credit
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Migration of Centralised Registration
• Currently under Centralised Registration
• Migrate Credit as per current return into GST
• Filed within 3 months of migration
• Is eligible to transfer Credit (with same PAN)
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Migration of Service Tax Reversed
• CENVAT availed Service Invoices currently
• Not paid within 3 months
• CENVAT reversed currently
• Eligible for Credit under GST
On Payment
Within 3 months from appointed date
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Migration relating to Job work
• Inputs as such & Semi Finished goods
• Sent To JOB WORKER
• Without payment of duty
• For further processing, testing, repair, reconditioning under earlier law
• Returned within 6 months from Appointed Date
GST not payable
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Migration relating to Job work…
GST not payable only if
• Manufacturer & Job worker
• Declare respective Stock
• On appointed date
• In form & manner to be prescribed
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Migration relating to Sales Returns
• Duty paid Goods removed under current law
6 months prior to appointed date
• Returned within 6 months from appointed date
• Returned by Registered person
GST applicable (deemed to be supply)
• Returned by Unregistered person
Duty paid under existing law eligible for REFUND
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Migration relating to Price Revisions
• Contract prior to appointed date
• Revision after the appointed date
• Supplementary Invoice, Debit or Credit to be issued within 30 days
• Upward Revision
Treated as Supply
Pay GST
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Migration relating to Price Revisions…
Downward Revision
• Treated as adjustment to Supply
• If Tax liability is to be reduced then;
Recipient to Reverse Credit availed
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Migration relating to Refund
• Applied before appointed day
• Applied after appointed day for exports before
• Shall be paid in Cash
• Subject to Doctrine of Unjust Enrichment
• Credit shall lapse if Refund rejected
• If Credit is migrated, then No Refund
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Migration relating to Service Advance
• Service Tax paid under current law on Advance
• Service not provided
• Refund shall be paid in cash only
• Subject to Doctrine of Unjust Enrichment
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Migration relating to Taxes paid earlier
• On Goods if State VAT paid earlier NO GST
• On Services if Service Tax paid earlier NO GST
• On transactions where VAT & Service Tax are applicable
• Tax to be paid only under GST
• Tax paid earlier taken as Credit
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Migration relating to Sale or Approval
• Goods sent on Sale or Approval
• Within 6 months prior to appointed day
• Returned / Rejected within 6 months from appointed day
NO GST on return / rejection
• 6 months extendable by 2 months on request
• Returned beyond 6 months – GST applicable
• Not Returned – Sender to pay GST