1. TRANSITIONAL PROVISIONS
IN GST
SMT. PREETI JOHARI
ASST. COMMISSIONER, CT, MP

2. SECTIONS MIGRATION OF EXISTING TAX PAYERS [s. 139]
CENVAT/VAT CREDIT
CENVAT/VAT Credit c/f in a return to be allowed as ITC [s.140(1)]
Un-availed CENVAT/VAT Credit on capital goods, not c/f in a return, to be allowed in certain situations [s.140(2)]
INPUT CREDIT ON STOCK
Of Inputs used for manufacture of goods exempted earlier but taxable now
[ s.140(3)]
manufacture of goods exempted and non exempted both [s. 140(4)]
Inputs received on & after the appointed day [s. 140(5)]
Of inputs held by a person switching over from composition scheme
[s. 140(6)]

3. SECTIONS
JOB WORK
Inputs/semi – finished/Finished removed earlier for job work returned after the appointed day [ s. 141]
RECOVERY/REFUND [PENDING CLAIMS, CLAIM OF CENVAT/INPUT TAX, PROCEEDINGS RELATING TO OUTPUT DUTY LIABILITY, UPON ASSESSMENT/REVISION OF RETURNS] [s. 142]
MISCELLANEOUS [ s142]

4. General Concept if there is a output tax liability in GST.
Credit on stock will available.
Admissible in both Acts.
Recovery according to GST.
Refund according to existing Law.

5. MIGRATION OF EXISTING TAX PAYERS’ TO GST
Taxable Person furnishes required information within 6 months
FINAL REGISTRATION CERTIFICATE IS GRANTED
Issue of Provisional Certificate with validity of 6 months
Taxable Person does not furnish required information within 6 months
Provisional Certificate may be Cancelled
Provisional Certificate is cancelled upon dealer’s application [Not Liable under GST]
Provisional Certificate is DEEMED NOT TO HAVE BEEN ISSUED

6. CENVAT/VAT CREDIT [S.140] C/F IN THE LAST RETURN UNAVAILED CREDIT ON
PRE GST
CENVAT/
VAT CREDIT
UNAVAILED CREDIT ON
CAPITAL GOODS
MANUFACTURED GOODS EXEMPT EARLIER - TAXABLE NOW
ENJOYED COMPOSITION PRE GST, NOW UNDER NORMAL SCHEME

7. CREDIT WILL BE AVAILABLE IN GST Subject to the following Conditions :
CENVAT/VAT CREDIT [S.140]
CENVAT/VAT CREDIT
CARRIED FORWARD
CREDIT WILL BE AVAILABLE IN GST
UNAVAILED CENVAT/VAT CREDIT ON CAPITAL GOODS
NOT CARRIED FORWARD
Subject to the following Conditions :
The amount has to be admissible as CENVAT/VAT credit under the earlier law & as ITC under the GST Law
furnished all the returns for six months
not claimed vat refund
not manufactured under exemption notification
other than paying tax under section 10

8. CENVAT/VAT CREDIT on stock of good held [S.140]
CENVAT Credit
Not Registered
Earlier Exempted
works contractor
availing benefit of notification
first stage dealer
second stage dealer
register importer
depot of manufacturer
but Taxable under GST
SHALL BE ENTITLED for Credit of eligible duties/taxes/VAT on
Inputs held in stock on the
appointed day
Inputs contained in semi-finished /finished goods held in stock on the appointed day

9. CENVAT/VAT CREDIT on stock of good held [S.140]
not registered earlier
Earlier selling exempted goods
first point tax paid goods
Taxable under GST
SHALL BE ENTITLED for Credit of eligible duties/taxes/VAT on
Inputs held in stock on the
appointed day
Inputs contained in semi-finished /finished goods held in stock on the appointed day
PROVIDED 9

10. CENVAT/VAT CREDIT on stock of good held [S.140]
Inputs are used for making taxable supplies
Inputs were otherwise available for CENVAT/VAT Credit if credit is available on it in GST
Is in possession of valid invoice, etc which were issued not earlier than 12 months from the appointed day, evidencing payment of duty
The supplier of services not taken any abatement 10

11. CENVAT/VAT CREDIT on stock of good held [S.140]
Not having invoice (other than a manufacturer of supply of service)
Credit on Stock 40%
Credit After payment of Tax Under GST
Goods are not wholly exempted
Benefit transfer to Recipient
Scheme is available for Six Tax Periods
Document of procurement is required.

12. CENVAT/VAT CREDIT on stock of good held [S.140]
VAT/CENVET Credit
Manufactured & sold goods exempted &
non exempted both
Taxable under GST
SHALL BE ENTITLED for Credit of eligible duties/taxes/VAT on
Inputs held in stock on the
appointed day
Inputs contained in semi-finished /finished goods held in stock on the appointed day
according sub sec 1 & sub sec 3 12

13. Goods Received on or after
Goods and services received after appointed day.
duty/Tax has been paid under existing Law.
Recorded in books of accounts within 30 days.
extended period 60 days.
statement has to furnished.
invoice detail description quantity and value.

14. CENVAT/VAT CREDIT on stock of good held [S.140]
in Composition but under Normal scheme in GST
SHALL BE ENTITLED for Credit of eligible duties/taxes/VAT on
Inputs held in stock on the
appointed day
Inputs contained in semi-finished /finished goods held in stock on the appointed day
PROVIDED 14

15. CENVAT/VAT CREDIT on stock of good held [S.140]
Inputs are used for making taxable supplies
Inputs were otherwise available for CENVAT/VAT Credit if credit is available on it in GST
Is in possession of valid invoice, etc which were issued not earlier than 12 months from the appointed day, evidencing payment of duty
The Registered person not paying tax under section 10. 15

16. MISCELLANEOUS CREDIT DISTRIBUTION OF SERVICE TAX BY INPUT SERVICE DISTRIBUTORS
It is AN OFFICE of the supplier of goods/services which receives tax invoices for the purpose of distribution of credit to a SUPPLIER of taxable goods/services having same PAN
INPUT SERVICE DISTRIBUTOR
CREDIT of Service Tax
RECEIVED - PRE GST
will be available for distribution as credit in GST
even if the invoices are received on or after the appointed day
The provision overrides all the other provisions contrary to it 16

17. ITC availability for centralized Registration
ITR Carry forward in return.
return for 3 months.
Original Return / Revised return which claim less.
ITC is admissible under this act.
may be transfered to any registered person having same PAN.

18. ITC credit for services
ITC reverse due to non payment
Can be claimed if Payment received within 3 months.
Eligible Duty for sub sec 3,4,6– Additional Duty of Excise (GSI), CVD, SAD, Additional Duty of Excise (T&T article), Duty of Excise, Additional Duty of Excise (M&T Article), National calamity Contingent duty, Service Tax (sub sec 5)

19. If Not Return within prescribed period ITC will be recovered
JOB Work (S141)
Inputs, Semi Finished goods and Finished Goods
Conditions:
Removal/Dispatch to the job worker prior to the appointed day&
Returned within six months from the appointed day/extended period (not more than 2 months)
Manufacturer & Job Worker both declare the details of Inputs/Semi-finished/Finished Goods held in stock by the Job Worker on the appointed date
No Tax is payable
If Not Return within prescribed period ITC will be recovered
Manufacturer can transfer finished goods to the premises of any regd. Taxable person for Export – without tax 19 19

20. Refund of Duty/ Tax Paid.
Goods Return [S142]
When,
Goods were removed/sold within 6 months prior to the appointed day &
Returned within 6 months from the appointed day
Proper Officer can satisfactorily identify the goods, then for
Goods on which Duty/Tax paid under the earlier law
No Tax is payable by the person returning the Goods, If Unregistered
Refund of Duty/ Tax Paid.
Tax is payable by the person returning the Goods, If registered

21. Price Revision [S142]
Price is REVISED after the appointed day in respect of a previous contract
Documents that may be issued by the supplier
For Upward Revision
Supplementary Invoice/Debit Note
For Downward Revision
Supplementary Invoice/Credit Note
ITC should be reversed
Documents shall be deemed to have been issued in respect
of an outward supply made under GST

22. REFUND/RECOVERY [s.142] Refund/ Recovery
CENVAT/VAT Credit as per Earlier Law
Assessment/Adjudication Proceeding as per Earlier Laws(any tax/penalty/interest)
Proceeding of appeal, revision, review or reference initiated before the appointed day to be disposed of as per the earlier law
Refund/ Recovery
Liability of Output Duty/ Tax as per Earlier Law
Revision of return as per Earlier Law
PENDING REFUND CLAIMS related for period BEFORE THE APPOINTED DAY to be disposed of as per the provisions of earlier law
Any recovery pending after disposal of any proceeding will be recovered as an arrears of Tax under this act.

23. REFUND/RECOVERY [S 142]
To be generally paid in Cash & as per the provisions of earlier law
REFUND -
Pending , on export,or accruing from appeal, etc
Rejected Claim of Refund to LAPSE
RECOVERY resulting from proceedings under the earlier law
To be Recovered as an arrear of GST
Amount refundable/recoverable shall not be admissible as ITC under GST

24. Goods Sent for approval (S142)
No tax is payable.
Returned within 6 months.
extended period 2 months.
Not Returned within prescribed period tax is payable by supplier.
Returned after prescribed period tax is payable by person returning the goods.

25. --- this provision is specific to SGST Law
Goods Sent for approval (S142)
Goods Sent on approval basis
Rejected Goods returned within six months
No Tax is payable on returned goods
Not earlier than six months prior to the appointed dated
Rejected Goods returned after six months/ extended period(Max. 2 months)
Goods taxable under GST
Tax is payable by the person returning the goods
Rejected/Not Approved by the buyer
Goods Rejected but not returned within six months/ extended period
Goods taxable under GST
Tax is payable by the person who sent the goods on approval basis
--- this provision is specific to SGST Law

26. MISCELLANEOUS DEDUCTION OF TAX AT SOURCE [s. 142]
Goods sold/invoice issued prior to the appointed day
Payment made against such sale, on or after the appointed day
Tax was required to be deducted on such sale under earlier law
Will not be considered for TDS under GST Law
--- this provision is specific to SGST Law 26

27. Agent entitled to take credit of tax paid on such goods
MISCELLANEOUS TAX PAID ON GOODS/ CAPITAL GOODS LYING WITH AGENTS TO BE ALLOWED AS CREDIT [s142
Goods belonging to Principal lying with the agent on the appointed day
Conditions:
Agent is registered under GST
Principal & Agent both declare the details of stock of Goods lying with the agent immediately preceding the appointed day
Invoices were issued not earlier than 12 months prior to the appointed day
Principal has either reversed or not availed of the ITC in respect of such goods
Agent entitled to take credit of tax paid on such goods
--- this provision is specific to SGST Law

28. --- this provision is specific to SGST Law
Reversed ITC [s. 142]
Input Tax Credit reversed prior to the appointed day not admissible as Input Tax Credit under the GST Law
NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN THE GST ACT
--- this provision is specific to SGST Law

29. ITC reversal Shall Debit in the electronic credit/cash ledger
Not in Composition Scheme earlier & having C/F eligible credit
Moves to Composition Scheme in GST
Shall Debit in the electronic credit/cash ledger
Amount equivalent to the credit of input
tax in respect of
Inputs held in stock on the appointed day
Inputs contained in semi-finished /finished goods held in stock on the appointed day
NOTE: Any amount of ITC remaining in the Electronic Credit Ledger after the payment of such amount, will lapse 29

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