1. GST – TRANSITIONAL AND CRITICAL PROVISIONS
CA. SANJEEV MALHOTRA
FCA, FCS, ACMA, LL.B.
Sanjeevmalhotrablog.wordpress.com/

2. Registration Provisions Sec 139
Registered taxable person under either of Central Excise/ Service Tax/State VAT having valid PAN to fill Form GST REG 20.
A provisional certificate will be issued to him on appointed day
Provisional certificate to be valid for 6 months
Final certificate to be issued on completeness of documents
Failure to furnish within 6 months will lead to cancellation of Registration.
Optional cancellation – file form GST REG 24
No migration for Centralised registration in Service tax
ISD – Need to apply afresh.

3. Carry over of Credits.. 140
The closing balance of CENVAT Credit / VAT Input tax credit to become opening balance of CGST / SGST in GST.
Credit should be eligible in earlier law and in GST also.
Furnished all returns during previous six months.
Credit does not relate to goods manufactured and cleared under exemption notification.
Claim application in Form GST TRAN 01 to be filed within 60 days of appointed day.
Recovery of credit under earlier law to be considered as arrear of tax in GST.
For SGST applicant shall specify separately
Value of claims under Section 3, 5(3), 6, 6A, 8A of CST.
The Sr. no. and value of declarations in Form C/F and/or certificates in form E/H or I specified in Rule 12 of CST rules.
The unavailed credit on Capital goods in CENVAT / Input tax credit to be eligible in GST as CGST / SGST.

4. Not Registered or Composition – Sec 140
Registered taxable person not liable to be registered earlier, or
Dealing in exempted goods under earlier law.
Composition dealers earlier
First stage / second stage dealers or registered importers.
Goods are taxable in GST
ITC to be eligible in GST
Eligible for credit in GST of inputs held in stock/ Semi-finished goods/ finished goods.
He should be in possession of invoice or other credit taking documents
Documents should not be earlier than 12 months preceding appointed day.
In case not in possession of tax paying documents then credit of 40% tax for six months. the said taxable person passes on the benefit of such credit by way of reduced prices to the recipient;

5. Manufacturer of taxable and exempted goods
Registered taxable person who manufactures taxable and exempted goods.
Manufacturer paying duty at fixed rate or fixed amount.
Goods are taxable in GST
Eligible for carry forward of credits in his return.
Eligible for credit in GST of inputs held in stock/ Semi-finished goods/ finished goods in relation to exempted goods.
He should be in possession of invoice or other credit taking documents
Documents should not be earlier than 12 months preceding appointed day.

6. Goods or Services in transit on appointed day
Duty or tax was paid before the appointed day.
Eligible for credit after appointed day
Condition that
invoice is recorded within 30 days of AD.
This period of 30 days can be extended by another 30 days by Commissioner.
Shall furnish a statement in the required manner.
Credit reversed in Service tax due to non payment of consideration within 3 months.
Is eligible in GST provided the payment is made within 3 months of appointed day otherwise it will be lost.

7. Input Service Distributor / Centralised Regn.
Registered ISD takes registration in GST as well.
Eligible for credit carried forward in the returns.
If original return is furnished within 3 months of appointed day.
Or revised return where the credit has been reduced from what was claimed earlier.
Such amount is admissible for ITC in GST.
Centralised Registration cases - Such credit can also be transferred to any other person having the same PAN.
Services received prior to appointed day by ISD for which bills are received after appointed day.
Eligible to be distributed by such ISD even if invoices are received on or after appointed day.

8. Job Work Goods returned after appointed day
Received back within 6 months (8 months, if extended by Commissioner) of appointed day
No tax shall be payable if manufacturer and job worker had declared this stock on the appointed day.
Tax will be payable by job worker if such inputs are sent back after 6 months or extended period.
Tax will be payable by manufacturer if goods sent are not received back within 6 months (8 months, if extended)of their sending to job worker.
Manufacturer may clear these goods from the premises of job worker for supplying to another person on payment of tax or for export.

9. Goods returned after appointed day
Removed not earlier than 6 months prior to appointed day
Returned within 6 months of appointed day.
Returned by person not registered.
Eligible for refund of duty paid in existing law.
Provided such goods are identifiable by proper officer of GST.
Returned by registered person.
Return of goods will be deemed as a supply.

10. Price revision after appointed day
In pursuance of contract entered prior to AD.
Revised upward, Supplementary invoice or debit note issuance within 30 days of revision.
Will be treated as outward supply under GST.
Downward revision, Supplementary invoice or credit note issuance within 30 days of revision.
Will be treated issued under GST.
Recipient to get credit only if the Supplier reverses equivalent tax.

11. Matters to be disposed off under earlier law
Pending refund claims filed before or after AD in respect of cenvat credit, duty, tax or interest.
Filed after AD for goods cleared before AD and exported before or after AD
All such claims will be paid in cash.
Claims fully or partially rejected, amount would lapse.
No claim will be allowed in case cenvat credit in respect of such claim has been carried forward in GST.
Filed after the AD for services not rendered but tax deposited and payment received before AD would be settled in cash.
Finalization of proceeding relating to tax liability.

12. Matters to be disposed off under earlier law
Finalization of proceeding relating to CENVAT credit.
Finalization of proceedings relating to output duty.
Finalization of any adjudication proceedings.
Revision of return after the appointed day.
claim Found admissible would be paid in cash.
Amount rejected shall not be eligible for carry forward.
No refund shall be allowed if such cenvat credit has been carried forward.
IN case any such proceeding results in recovery.
would be recovered as arrear of tax under GST.
Amount so recovered shall not be eligible for input tax credit.

13. Goods Sent on Approval basis
Removed not earlier than 6 months prior to appointed day
Rejected and returned.
no tax shall be payable provided
returned within 6 months (extendable by another 2 months by Commissioner) of appointed day.
Not Returned within permitted time.
tax at the applicable rate in GST would be payable by person returning the goods.
tax at the applicable rate in GST would be payable by person who had sent such goods.

14. Transaction on which TDS applicable
TDS was applicable in earlier law also.
Invoice issued before appointed day and payment was received after appointed day.
no TDS in GST would be collected.
If TDS was deducted in earlier law.

15. Schedule I Entries
Permanent transfer or disposal of business assets on which ITC has been taken.
Supply of services between related persons / distinct persons.
Importation of services from a related person / distinct person.
Rule 6(7) of Valuation Rules, NIL value of notified services.
Gifts by an employer to an employee of value not exceeding Rs /- in a FY.

16. Composite Supply and Mixed Supply
Consisting of two or more taxable supplies
Naturally bundled
Supplied in conjunction with each other
one of which is principal supply.
Mixed Supply
Two or more individual supplies of goods or services.
Made in conjunction with each other.
For a single price
Where supply does not constitute a composite supply.

17. Implication of Section 9(4)
Supply of taxable goods / services by a supplier who is not registered.
to a registered person.
Shall be paid by recipient on reverse charge basis.

18. GST on perquisites Provisio of entry 2 of Schedule I TOGETHER WITH
Section 9(4) of GST Act

19. Effect of multiple PAN Exports barred for such registered person.
Composition levy Sec 10
Effect of multiple PAN
Exports barred for such registered person.

20. THANK YOU CA. SANJEEV MALHOTRA FCA, FCS, ACMA, LL.B. 9810995282
Sanjeevmalhotrablog.wordpress.com/