1. Transitional Provisions

2. Present Scenario (Intra-State Trade of Goods)
State Tax = ₹ 13.31
(₹ 11 + ₹ ₹ 1.21)
VAT = ₹ 11
VAT = ₹ 12.10
ITC = (₹ 11)
₹ 1.10
VAT = ₹ 13.31
ITC = (₹ 12.10)
₹ 1.21
Input Manufacturer
Output Manufacturer
Dealer
Consumer
Excise = ₹ 10
Excise = ₹ 11
ITC = (₹10)
₹ 1
Central Tax = ₹ 11
(₹ 10 + ₹ 1)
Excise = 10%
VAT = 10%
Value Addition = 10%
ITC = Input Tax Credit
Tax Invoice (A)
Value = ₹ 100
Excise = ₹ 10
VAT = ₹ 11
₹ 121
Tax Invoice (B)
Cost = ₹ 100
Value = ₹ 110
Excise = ₹ 11
VAT = ₹ 12.10 ₹
Tax Invoice (C)
Cost = ₹ 121
Value = ₹
VAT = ₹ 13.31 ₹

3. GST Scenario (Intra-State Trade of Goods)
State Tax = ₹ 12.10
(₹ 10 + ₹ 1 + ₹ 1.10)
SGST = ₹ 10
SGST = ₹ 11
ITC = (₹ 10)
₹ 1
SGST = ₹ 12.10
ITC = (₹ 11)
₹ 1.10
Input Manufacturer
Output Manufacturer
Dealer
Consumer
CGST = ₹ 10
CGST = ₹ 11
ITC = (₹10)
₹ 1
CGST = ₹ 12.10
ITC = (₹11)
₹ 1.10
Central Tax = ₹ 12.10
(₹ 10 + ₹ 1 + ₹ 1.10)
CGST = 10%
SGST = 10%
Value Addition = 10%
ITC = Input Tax Credit
Tax Invoice (A)
Value = ₹ 100
CGST = ₹ 10
SGST = ₹ 10
₹ 120
Tax Invoice (B)
Cost = ₹ 100
Value = ₹ 110
CGST = ₹ 11
SGST ₹ 11
₹ 132
Tax Invoice (C)
Cost = ₹ 110
Value = ₹ 121
CGST = ₹ 12.10
SGST = ₹ 12.10 ₹

4. Present Scenario (Inter-State Trade of Goods)
State Tax (X) = (8.58-Refund Claim)
State Tax (Y) = ₹ 16.91
(₹ ₹ 3)
Entry Tax = ₹ 3
VAT = ₹ 11
CST = ₹ 2.42
ITC = (₹ 2.42)
₹ 0
VAT = ₹ 13.91
Input Manufacturer
Output Manufacturer
Dealer
Consumer
Excise = ₹ 10
Excise = ₹ 11
ITC = (₹10)
₹ 1
Central Tax = ₹ 11
(₹ 10 + ₹ 1)
Excise = 10%
VAT = 10%
CST = 2%
Value Addition = 10%
ITC = Input Tax Credit
Tax Invoice (A)
Value = ₹ 100
Excise = ₹ 10
VAT = ₹ 11
₹ 121
Tax Invoice (B)
Cost = ₹ 100
Value = ₹ 110
Excise = ₹ 11
CST = ₹ 2.42 ₹
Tax Invoice (C)
Cost = ₹
Value = ₹
VAT = ₹ 13.91 ₹

5. GST Scenario (Inter-State Trade of Goods)
State Tax (X) = ₹ 1.10
(₹ ₹ 10* + ₹ 1.10)
State Tax (Y) = ₹ 12.22
(₹ ₹ 9.78**)
Add. Tax = ₹ 1.10
SGST = ₹ 10
SGST = ₹ 12.22
IGST = (₹ 9.78)
₹ 2.44
** Centre will transfer IGST used for payment of SGST to State Y
Input Manufacturer
Output Manufacturer
Dealer
Consumer
IGST = ₹ 22
CGST = (₹10)
SGST = (₹10)
₹ 2
CGST = ₹ 10
CGST = ₹ 12.22
IGST = (₹12.22)
₹ 0
Central Tax = ₹ 12.22
(₹ 10 + ₹ 2 + ₹10* - ₹ 9.78**)
CGST = 10%
SGST = 10%
IGST = 20%
Value Addition = 10%
*State (X) will transfer ₹ 10 (SGST) used for payment of IGST to Centre.
**Centre will transfer ₹ 9.78 (IGST) used for payment of SGST to State (X).
Tax Invoice (A)
Value = ₹ 100
CGST = ₹ 10
SGST = ₹ 10
₹ 120
Tax Invoice (B)
Cost = ₹ 100
Value = ₹ 110
IGST(20%) = ₹ 22
Add. Tax = ₹ 1.10 ₹
Tax Invoice (C)
Cost = ₹
Value = ₹
CGST = ₹ 12.22
SGST = ₹ 12.22 ₹
* State X will transfer SGST used for payment of IGST to Centre

6. Migration of Existing Taxpayers to GST – S. 166
Every registered person under the earlier law will be issued a provisional registration certificate (PRC)
Such PRC will be valid for six months or for such extended period
Final RC will be issued by Central / State Government on furnishing of the prescribed information
The PRC issued to a person not liable for registration under GST shall be cancelled upon filing application or deemed to be cancelled

7. Migration of Existing Taxpayers to GST – S. 166
Procedure to registered:
To begin with the State department will be communicating the Provisional ID and password taxpayers registered with the VAT department.
Access the GST Common Portal, create your unique username and new password after using provisional ID and password provided by the VAT department.
Login to the GST Common Portal with your new login details
Fill the enrollment application and provide business details.
Verify the auto populated details from the VAT system.
E-Sign and submit the application and attached necessary attachments. (E-sign ie. digitally or Aadhar OTP)
If details are satisfied an application number (ARN) will be issued. Provisional ID Status- Migrated till appointed date. On appointed date, Provisional ID status would be activated

8. Carry forward of CENVAT Credit – S. 167
Carry forward of Input tax/ CENVAT credit – through a return to registered person other than COT
Credit* –relating to the period ending the date immediately preceding appointed day
Such credit must be eligible under earlier law and GST law
Credit can be taken in the electronic credit ledger
Excess credit taken will be recovered as arrears of tax under GST law
Return to be filed within 90 days of appointed day under SGST
*Credit attributable to any claim related to specified sections of CST Act, 1956 not eligible to be carried forward.
- COT means Composition Taxpayer

9. Unavailed CENVAT Credit on Capital goods – S. 168
A registered taxable person other than COT shall be eligible to take the credit
In the electronic credit ledger
Credit on Capital Goods) not carried forward in a return
Such Unavailed credits must be eligible under the earlier law AND under GST law
Unavailed Credit = (Total eligible credit – credit availed) under the earlier law

10. Person eligible for input tax credit
Credit of eligible duties and taxes on input held in stock to an UR dealer in earlier law– S. 169
Person eligible for input tax credit
Person engaged in manufacture of exempted goods or provision of exempted services, or who was providing works contract service and was availing of the benefit of notification No. 26/2012-Service Tax, or a first stage dealer or a second stage dealer or a registered importer under the earlier law but liable to tax under GST law
Credit available on
Inputs held in stock and inputs contained in semi-finished goods or finished goods held in stock as on appointed day
Above benefit not available for input services
Such credit can be taken in the electronic credit ledger
Conditions
Goods must be used for taxable supply
Such person should be in possession of invoice or other prescribed document
Invoice or other document should be within 12 months from the appointed day
Excess claims will be recovered as arrears of tax under GST law
Benefit of Reduced Prices to the recipient
NOTIONAL CREDIT TO THE VAT DEALERS : Prior to this amendment a manufacturer was eligible to claim input tax credit of excise duty paid on inputs under earlier law whereas traders were faced with additional tax burden as they were not be able to claim the credit as done by manufacturers.

11. Credit of eligible duties/ taxes in respect of inputs held in stock for providing exempted and non-exempted goods or services – S. 170
A registered taxable person engaged in manufacture/ provision of
Exempted/ non-exempted goods/ services
Can carry forward amount of CENVAT c/f in return, Credit in electronic credit ledger in terms of section 167
Amount of CENVAT Credit of eligible duties in respect of inputs held in stock
related to exempted goods/ services – in terms of section 169

12. Credit of eligible duties/ taxes in respect of inputs/ input services during transit – S. 171
Appointed Day
Input / Input Services received after appointed day
Supplier
Recipient
Statement for credit taken to be furnished in prescribed format
Duty / Tax Paid prior to appointed day
Provided invoice for the same was recorded in books of accounts within 30 days or extended period (30 days) of appointed day

13. Person eligible for input tax credit
Credit of eligible duties and taxes on inputs held in stock on switching over from composition scheme – S. 172
Person eligible for input tax credit
A registered taxable person paying taxes under the composition scheme under earlier law
Credit available on
Inputs held in stock and inputs contained in semi-finished goods or finished goods held in stock as on appointed day
Above benefit not available for input services
Such credit can be taken in the electronic credit ledger
Conditions
Person not paying taxes under composition scheme under GST law
Goods must be used for taxable supply
Otherwise eligible to take the credit under earlier law and under GST law
Such person should be in possession of invoice or other prescribed document not older than 12 months period.

14. Exempted goods returned to the place of business on or after the appointed day – S. 173
Exempted goods were removed/ sold under the earlier law (not prior to 6 months from appointed day);
Appointed Day
Supplier
Recipient
Exempted goods are returned to the any place of business within 6 months from the appointed day without payment of tax
Provided Goods are identifiable to satisfaction of proper officer

15. Duty/ Tax paid goods returned to the place of business on or after the appointed day – S.174
Supplier
Recipient
Goods are returned to the any place of business within 6 months from the appointed day with payment of GST- B2B
Claim Refund in case of B2C
Duty / Tax Paid prior to appointed day
Provided Goods are identifiable to satisfaction of proper officer

16. Inputs removed for Job work and returned on or after the appointed day – S. 175
Inputs removed/ dispatched as such or after partial processing etc. for job work under the earlier law prior to appointed day;
Appointed Day
Inputs are returned within 6 months or within the extended period (2 months) from the appointed day to the said factory/ said place of business.
Manufacturer
Job Worker
Manufacturer and Job worker need to declare details of inputs held in stock by the job worker on behalf of the manufacturer on the appointed day
If returned after 6 months, ITC liable to be recovered as per S. 184

17. Semi-finished goods removed for Job work and returned on or after the appointed day – S. 176
Semi-Finished Goods removed for job work under the earlier law prior to appointed day;
Appointed Day
Semi-finished Goods are returned within 6 months or within the extended period (2 months) from the appointed day to the said factory/ said place of business.
Manufacturer
Job Worker
Manufacturer may transfer such goods to premises of any registered taxable person for purpose of supplying therefrom with (in India) or without (exports) payment of tax, within 6 months from appointed day.
Manufacturer and Job worker need to declare details of inputs held in stock by the job worker on behalf of the manufacturer on the appointed day
If returned after 6 months, ITC liable to be recovered as per S. 184

18. Finished goods removed for carrying out certain processes and retuned on or after the appointed day – S. 177
Excisable Goods removed w/o payment of duty for tests/ processes etc. under the earlier law prior to appointed day;
Appointed Day
Finished Goods are returned within 6 months or within the extended period (2 months) from the appointed day to the said factory/ said place of business.
Manufacturer
Job Worker
Manufacturer may transfer such goods from the other premises with (in India) or without (exports) payment of tax, within 6 months from appointed day.
If returned after 6 months, ITC liable to be recovered as per S. 184

19. Issue of supplementary invoice, etc
Issue of supplementary invoice, etc. where price is revised in pursuance of a contract – S. 178
Contract entered prior to the appointed day and price of goods and / or services is revised on or after the appointed day
Upward revision in the price
Issue of supplementary invoice or debit note within 30 days from such revision
Downward revision in the price
Issue of supplementary invoice or credit note within 30 days from such revision
Note - Taxable person shall be allowed to reduce his tax liability, if the recipient of invoice or credit note has reduced his input tax credit corresponding to such reduction of tax liability.

20. Pending refund claims to be disposed off under earlier law – S. 179
Refund claim of duty/tax and interest and any other amount due under earlier law
Application to be filed before the appointed day
Refund proceeding will be in terms of earlier law other than Section 11B (2) of Central Excise Act, 1944
Eligible refund to be paid in cash and if fully or partially rejected; balance to lapse (CGST)
Eligible refund to be paid in terms of provision of law and if fully or partially rejected; balance to lapse (SGST)
No Refund claim allowed if where credit balance has been carried forward under GST

21. Claim of CENVAT Credit to be disposed off under the earlier law – S
Refund claims filed after the appointed day for goods cleared or services provided before the appointed day and exported before or after the appointed day
Refund claims filed after the appointed day for payments received and tax deposited before the appointed day in respect of services not provided
Proceedings of appeal revision, review or reference relating to claim of input tax / CENVAT credit will be disposed of in accordance with earlier law;
Inadmissible Credit to be recovered as arrears of tax under GST law
Not eligible for claim of input tax credit under GST law
Admissible CENVAT credit to be refunded in cash (CGST)
Admissible input tax credit to be refunded in accordance with provision earlier law (SGST)

22. Finalization of proceedings relating to output duty liability – S. 183
Proceeding of appeal revision, review or reference relating to any output duty liability initiated before, on or after appointed date disposed of in accordance with earlier law
Any amount payable to be recovered as arrears of tax under GST law
Not eligible for claim of input tax credit under GST law
Admissible amount to be refunded in cash (CGST)
Admissible amount to be refunded in accordance with provision of earlier law (SGST)

23. Treatment of the amount recovered or refunded in pursuance of assessment or adjudication proceedings – S. 184
Assessment or adjudication proceedings instituted under earlier law against recovery of tax, interest or penalty whether on or after the appointed day
Amount payable to be recovered as arrears of tax under GST law
Not eligible for claim of input tax credit under GST law
Admissible amount to be refunded in cash in earlier law under Excise / ST
Admissible amount to be refunded in accordance with provision of earlier law (VAT)

24. Treatment of amount recovered or refunded pursuant to revision of return – S. 185
Revision of return furnished under the earlier law revised after the appointed day
Amount payable on account of revision
Recovered as arrears of tax under GST and such amount shall not be eligible for input tax credit
Amount refundable on account of revision
Refund in accordance with provision of earlier Excise / ST/ VAT law

25. Treatment of long term construction / works contracts – S. 186
Liable for payment of taxes under the GST law
Contract entered prior to the appointed day
Goods and / or services supplied on or after appointed day

26. Progressive or periodic supply of goods or services – S. 187
Tax Shall not be payable if
Duty or tax payable has been already paid under the earlier law
Consideration is received prior to the appointed day ; and

27. Taxability of Supply of Goods/ Services – S. 188
Tax Shall be payable
under the earlier law
To the extent Point of Taxation arises before appointed day

28. Credit distribution of service tax by ISD (CGST) – S. 190
Input service distributor shall be eligible for distribution of credit
Services are received prior to appointed day
Invoices for such services are received on or after the appointed day

29. Person eligible for input tax credit Credit available on Conditions
Tax paid on goods/ capital goods lying with agent to be allowed as credit (SGST) – S. 192
Person eligible for input tax credit
Agent is eligible for taking credit on tax paid goods
Credit available on
Any goods/ capital goods belonging to the Principal; and
Such goods are lying at the premises of Agent as on the appointed day
Conditions
Agent must be a registered taxable person under GST
Details of goods lying must be declared by the Agent and Principal
Invoices pertaining to such goods must be within twelve months from the appointed day; and
Principal either reversed or should not have availed credit

30. Goods sent on approval basis returned on or after the appointed day (SGST) – S. 195
Tax not to be payable when
Goods sent on approval basis under earlier law prior to six months from the appointed day;
Such goods are returned within six months or within the extended period from the appointed date
Tax to be payable when and by whom
Goods are liable for payment of taxes under GST; and
Such goods are returned after six month or within the extended period from the appointed day
Tax shall be payable by person returning the goods, if the goods are returned after a period of six months or extended period of time from the appointed day
Tax shall be payable by person who has sent goods on approval basis, if the goods are not returned within the six months or extended period of time from the appointed day

31. Deduction of tax at source – S. 196
TDS shall not be made when
Invoices are issued before the appointed day
Payment of such invoices is made on or after the appointed day

32. Other Provisions
Branch Transfers (SGST) – Amount of ITC reversed prior to appointed day not admissible as ITC under GST. S. 194
Availing CENVAT Credit (CGST Act) – When CENVAT Credit has been reversed due to non-payment of consideration within a period of 3 months, such credit can be reclaimed provided taxable person has made the payment of consideration within 3 months from the appointed day. S. 197

33. General Provisions & Powers
Officers under the existing laws to be subsumed into GST
To be appointed as GST Officer / Competent Authority under the respective Act
Provided they are continuing in office as on appointed day
Central / State Government may issue order / make rules for smooth transition into GST

34. Email at : sharad.Singhal@icai.org
Thanking You
CA.Sharad Singhal
Secretary
Indirect Taxes Committee The Institute of Chartered Accountants of India ICAI Bhawan A-29, Sector - 62, NOIDA (U.P.) India Telephone Direct Mobile :
at :