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Article Details
TRANSITIONAL PROVISIONS FOR GST - explained by SGA



TRANSITIONAL PROVISIONS FOR GST
 
Transition Rules are hosted on the Government website; its salient features are as under:

1. Persons entitled to take transition credit will have to submit a declaration within 90 days (upto 30th Sept) specifying the credit he wants to take on stocks lying with him on 30th June.

2. Declaration will have to be submitted in from GST Tran-1

3. Commissioner can extend this timeline by another 90 days.

4. In case of capital goods, whose part credit was availed in current period and part credit is to be availed under GST, he will have to submit the declaration specifying:
a. Amount of credit already availed in the current law
b. Amount of credit yet to be availed under the existing law and which he intends to avail under GST period

5. Persons having excise invoices for stocks lying as on 30th June will be entitled to take full credit of excise mentioned in the invoices.

6. Deemed Credit: Persons who do not have excise invoice, will be eligible to take credit in the following manner:
  1. For goods taxable @ 18% or above - Credit shall be allowed at the rate of 60% of CGST payable on that goods – so if the rate is 18% then credit will be available @ 8.4% (60% of 9% CGST)
  2. For goods other than above - Credit shall be allowed at the rate of 40% of CGST payable on that goods – so if the rate is 12% then credit will be available @ 2.4% (40% of 6% CGST)
7. Credit in the above Deemed Credit scheme will be available only once the said goods are sold and GST is paid. It’s like a cash back scheme.

8. To take the credit in this scheme following conditions will have to be fulfilled:
a. such goods were not unconditionally exempt from excise
b. the document for procurement of such goods is available
c. the stock of goods on which the credit is availed is so stored that it can be easily identified by the registered person.

9. Deemed credit scheme will go on for 6 months from GST date, so stocks lying as on 30th June have to be sold maximum upto 31st December, 2017. No credit will be available if these goods are sold after December 2017.

10. Separate return under for GST TRAN-2 will have to be filed.

11. Every person to whom the provision of section 142 (11) (c) applies, shall submit a declaration within 90 days of GST date in form GST TRAN-1 furnishing the proportion of supply on which VAT or service tax has been paid before the GST day but the supply is made after the GST day, and the ITC admissible thereon.

12. Every person to whom the provisions of section 141 (Job-worker) apply shall, within 90 days of the GST day, submit a declaration electronically in form GST TRAN-1, specifying therein, the stock held by him on the appointed day.

13. Every person having sent goods on approval under the existing law and to whom section 142(12) applies shall, within 90 days of the appointed day, submit details of such goods sent on approval in form GST TRAN-1.
 

CA Vikas Goyal 
+91 9873515356                                                
 

S. GOYAL & ASSOCIATES
Chartered Accountants

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Email:
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