1. Transitional Provisions in GST
Study Circle – Cochin Chapter of Institute of Cost Accountants of India

2. Migration of Registration (Section 166 )
Every person registered under any of the earlier laws and having a valid PAN shall be issued a certificate of registration on a provisional basis
The provisional certificate of registration shall be valid for a period of six months from the date of its issue:
The said validity period may be extended for such further period as notified
Every person to whom a provisional certificate of registration has been issued shall, within six months furnish such information as may be prescribed.
On furnishing of such information, the certificate of registration shall be granted on a final basis.
The provisional certificate of registration issued may be cancelled if such person fails to furnish, within the time specified the information
The provisional certificate of registration issued shall be deemed to have not been issued if the said registration is cancelled in pursuance of an application filed by such person that he was not liable to registration.
A person to whom a certificate of registration has been issued on a provisional basis and who is eligible to pay tax under section 9 (Composition Levy) , may opt to do so within such time and in such manner as may be prescribed:
PROVIDED that where the said person does not opt to pay tax under section 9 within the time prescribed in this behalf, he shall be liable to pay tax under section 8.
Study Circle – Cochin Chapter of Institute of Cost Accountants of India

3. Carry Forward of Unutilized Credit in Returns (Section 167 )
Carry forward of unutilized credit under the CENVAT Credit Rules, 2004 and the State level VAT Acts
CENVAT credit on Inputs & Capital Goods
VAT Credit on Inputs & Capital Goods under respective State Laws
Carried forward in the return filed for the last month / period under the existing law
Should/Must qualify for input credit under both, the existing law and the GST law
Would be made available as a balance in the Electronic Credit Ledger of the tax payer
CENVAT Credit can only be availed as CGST credit and VAT credit as SGST credit
In case of incorrect claim under the old law will be recovered as an arrear of tax under the GST Act. Applicable interest and penalties will apply under GST laws.
Study Circle – Cochin Chapter of Institute of Cost Accountants of India

4. Unavialed CENVAT Credit on Capital Goods (Section 168)
Under the CENVAT Credit Rules, 2004, in respect of eligible capital goods, credit is required to be claimed in 2 parts
50% of the central excise paid ought to be claimed in the same financial year in which the capital goods are received and the balance of the 50% can be claimed in any subsequent years
“Unavailed CENVAT credit” means the amount that remains after subtracting the amount of CENVAT credit already availed in respect of capital goods by the taxable person under the earlier law from the aggregate amount of CENVAT credit to which the said person was entitled in respect of the said capital goods under the earlier law
All the other condition applicable in section 167 for availing credit, except to the extend that credit shall be shown in the returns, are applicable here also
As per Rule 4(2)(b) of the CENVAT Credit Rules, the balance CENVAT Credit on capital goods which has not been availed in the first year will be available in any financial year subsequent to the financial year in which it was purchased.
Study Circle – Cochin Chapter of Institute of Cost Accountants of India

5. Credit of inputs held in stock (Section 169)
Credit of eligible duties and taxes in respect of inputs held in stock is allowable to a registered taxable person,
who was not liable to be registered under the earlier law, or
who was engaged in the manufacture of exempted goods or provision of exempted services (Sale of exempted goods under earlier law - SGST Law) , or
who was providing works contract service and was availing of the benefit of notification No. 26/2012-Service Tax, dated or (only in CGST Law)
a first stage dealer or a second stage dealer or a registered importer (only in CGST Law),
Entitled to take credit of eligible duties and taxes in respect of
inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the appointed day
Study Circle – Cochin Chapter of Institute of Cost Accountants of India

6. Credit of inputs held in stock (Section 169)
Subject to the following conditions:
such inputs and / or goods are used or intended to be used for making taxable supplies under this Act;
the said taxable person is in possession of invoice and/or other prescribed documents evidencing payment of duty under the earlier law in respect of such inputs;
such invoices and /or other prescribed documents were issued not earlier than twelve months immediately preceding the appointed day;
the said taxable person is eligible for input tax credit on such inputs under this Act;  
the said taxable person passes on the benefit of such credit by way of reduced prices to the recipient; and
the supplier of services is not eligible for any abatement under the Act: (only in CGST Law)
the said inputs were not [specified in Schedule--- of the earlier law or in the rules made thereunder or in any notification issued under the earlier law] as inputs on which credit was not admissible under the earlier law; (only in SGST Law)
PROVIDED that where a registered taxable person, other than a manufacturer or a supplier of services, is not in possession of an invoice or any other documents evidencing payment of duty in respect of inputs, then such registered taxable person shall, subject to such conditions, limitations and safeguards as may be prescribed, be allowed to take credit at the rate and in the manner prescribed. (only in CGST Law)
The amount of credit under this section shall be calculated in such manner as may be prescribed.
Study Circle – Cochin Chapter of Institute of Cost Accountants of India

7. Anti-profiteering Measure (Section 163)
The Central Government may by law constitute an Authority, or entrust an existing Authority constituted under any law, to examine
whether input tax credits availed by any registered taxable person or the reduction in the price on account of any reduction in the tax rate
have actually resulted in a commensurate reduction in the price of the said goods and/or services supplied by him.
The Authority shall exercise such functions and have such powers, including those for imposition of penalty, as may be prescribed in cases where it finds that the price being charged has not been reduced as aforesaid.
Study Circle – Cochin Chapter of Institute of Cost Accountants of India

8. Credit of inputs held in stock (Section 170)
Section 170 : A registered taxable person, who was engaged in the manufacture of non- exempted as well as exempted goods or provision of non-exempted as well as exempted services shall be entitled to take credit of :-
the amount of Cenvat credit carried forward in a return furnished under the earlier law by him in terms of section 167; and
(b) the amount of Cenvat credit of eligible duties in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the appointed day, relating to exempted goods or services, in terms of section 169.
Study Circle – Cochin Chapter of Institute of Cost Accountants of India

9. Inputs or Input Services in transit (Section 171)
Credit of eligible duties and taxes in respect of
inputs or input services received on or after the appointed day
but the duty or tax in respect of which has been paid before the appointed day,
subject to the condition that the invoice or any other duty/tax paying document of the same was recorded in the books of accounts within a period of thirty days from the appointed day:
the aforesaid period of thirty days may, on sufficient cause being shown, be extended by the competent authority for a further period not exceeding thirty days.
the said registered taxable person shall furnish a statement, in such manner as may be prescribed, in respect of credit that has been taken under the section.
Study Circle – Cochin Chapter of Institute of Cost Accountants of India

10. Inputs in Stock Switching over from Composition Scheme (Section 172)
A registered taxable person, who was either paying tax at a fixed rate or paying a fixed amount in lieu of the tax payable under the earlier law (“composition taxpayer”),
shall be entitled to take
credit of eligible duties in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the appointed date subject to :
such inputs and / or goods are used or intended to be used for making taxable supplies under this Act;
the said person is not paying tax under section 9;
the said taxable person is eligible for input tax credit on such inputs under this Act;
the said taxable person is in possession of invoice and/or other prescribed documents evidencing payment of duty under the earlier law in respect of inputs; and
such invoices and /or other prescribed documents were issued not earlier than twelve months immediately preceding the appointed day.
Study Circle – Cochin Chapter of Institute of Cost Accountants of India

11. Exempted Goods returned (Section 173)
Where any goods on which duty / tax had been exempt under the earlier law at the time of removal / sale
not being earlier than six months prior to the appointed day
are returned to any place of business on or after the appointed day
no tax shall be payable
if such goods are returned within a period of six months from the appointed day
such goods are identifiable to the satisfaction of the proper officer
tax shall be payable by the person returning the goods if the said goods are liable to tax under this Act and are returned after a period of six months from the appointed day
no tax shall be payable if the goods are returned by a person who is not registered under the Act even if returned after six months.
Study Circle – Cochin Chapter of Institute of Cost Accountants of India

12. Duty / Tax Paid Goods returned (Section 174)
Where any goods on which duty had been paid under the earlier law at the time of removal / sale
not being earlier than six months prior to the appointed day
are returned to any place of business on or after the appointed day
the registered taxable person shall be eligible for refund of the duty / tax paid under the earlier law where such goods are returned by a unregistered person
if such goods are returned within a period of six months from the appointed day
such goods are identifiable to the satisfaction of the proper officer
if the said goods are returned by a registered taxable person the return of the goods shall be deemed to be a supply
Study Circle – Cochin Chapter of Institute of Cost Accountants of India

13. Goods returned which are not Purchase Returns
Section 175 : Inputs removed for job work and returned on or after the appointed day
Section 176 : Semi-finished goods removed for job work and returned on or after the appointed day
Section 177 : Finished goods removed for carrying out certain processes and returned on or after the appointed day
No tax shall be payable if returned to the said factory within six months from the appointed day
Six months may, on sufficient cause being shown, be extended by the competent authority for a further period not exceeding two months
If such inputs / semi–finished goods / finished goods are not returned within a period of six months or the extended period the input tax credit shall be liable to be recovered in terms of section 184.
The provisions of the sections shall apply only if the manufacturer and the job worker declare the details of the inputs / semi–finished goods / finished goods held in stock by the job worker on behalf of the manufacturer on the appointed day in such form and manner and within such time as may be prescribed.
Study Circle – Cochin Chapter of Institute of Cost Accountants of India

14. Treatment of the amount in pursuance of assessment or adjudication proceedings under Earlier Law (Section 184)
Where in pursuance of an assessment or adjudication proceedings instituted,
whether before, on or after the appointed day, under the earlier law,
Any amount of tax, interest, fine or penalty becomes recoverable from the taxable person after the appointed day,
the same shall be recovered as an arrear of tax under this Act and
the amount so recovered shall not be admissible as input tax credit under this Act.
Any amount of tax, interest, fine or penalty becomes refundable to the taxable person,
the same shall be refunded to him in cash under the earlier law,
notwithstanding anything to the contrary contained in the said law other than provisions of sub-section (2) of section 11B of the Central Excise Act, 1944. . 
Study Circle – Cochin Chapter of Institute of Cost Accountants of India

15. Issue of supplementary invoices, debit or credit notes where price is revised
(Section 178) . 
Any contract entered into prior to the applicability of GST
Revision of Price of Goods / Services already supplied on or after the appointed day
Upward revision
Downward revision
Issue supplementary
invoice or debit note within 30 days of price revision
Issue supplementary invoice or credit note within 30 days of price revision (shall be allowed to reduce tax liability only if the recipient reduce his input tax credit correspondingly)
Deemed to be issued in respect of an outward supply
Study Circle – Cochin Chapter of Institute of Cost Accountants of India

16. Refund Claims from Earlier Laws
Section 179 : Pending refund claims to be disposed of under earlier law
Section 180 : 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 to be disposed of under earlier law
Section 181 : Refund claims filed after the appointed day for payments received and tax deposited before the appointed day in respect of services not provided
any amount eventually accruing to him shall be paid in cash,
notwithstanding anything to the contrary contained under the provisions of earlier law other than the provisions of sub-section (2) of section 11B of the Central Excise Act, 1944 (1 of 1944)
where any claim for refund of Cenvat credit is fully or partially rejected, the amount so rejected shall lapse:
no refund claim shall be allowed of any amount of Cenvat credit where the balance of the said amount as on the appointed day has been carried forward under this Act.   
Study Circle – Cochin Chapter of Institute of Cost Accountants of India

17. Finalization of Proceedings under Earlier Law
Section 182 : Claim of Cenvat credit to be disposed of under the earlier law
Section 183 : Finalization of proceedings relating to output duty or tax liability under the earlier law
Section 185 : Treatment of the amount recovered or refunded pursuant to revision of returns
Every proceeding of appeal, revision, review or reference relating to
a claim for CENVAT credit initiated whether before, on or after the appointed day, under the earlier law
any output duty or tax liability initiated whether before, on or after the appointed day,
shall be disposed of in accordance with the provisions of the earlier law (Section 183)
If any amount becomes recoverable as a result of such appeal, revision, review or reference,
the same shall be recovered as an arrear of duty or tax under this Act and
amount so recovered shall not be admissible as input tax credit under this Act
Any amount found to be admissible to the claimant shall be refunded to him in cash, and
shall not be admissible as input tax credit under this Act. . 
Study Circle – Cochin Chapter of Institute of Cost Accountants of India

18. Overlapping of Tax Liability
Section 186 : Treatment of long term construction / works contracts
The goods and/or services supplied on or after the appointed day
in pursuance of a contract entered into prior to the appointed day
shall be liable to tax under the provisions of this Act.
Section 187 : Progressive or periodic supply of goods or services
Notwithstanding anything contained in section 12 and 13 (Time of Supply)
no tax shall be payable on the supply of goods and/or services made on or after the appointed day
where the consideration, whether in full or in part, for the said supply has been received prior to the appointed day
and the duty or tax payable thereon has already been paid under the earlier law. . 
Study Circle – Cochin Chapter of Institute of Cost Accountants of India

19. Overlapping of Tax Liability
Section 188 : Taxability of supply of services in certain cases
Section 189 : Taxability of supply of goods in certain cases
the tax in respect of the taxable goods / services shall be payable under the earlier law to the extent the point of taxation in respect of such goods / services arose before the appointed day .
Where the portion of the supply of goods / services is not covered by this section, such portion shall be liable to tax under this Act. . 
Study Circle – Cochin Chapter of Institute of Cost Accountants of India

20. Credit Distribution by ISD & LTU
Section 190 : Credit distribution of service tax by ISD
the input tax credit on account of any services received prior to the appointed day by an Input Service Distributor
shall be eligible for distribution as credit under this Act
even if the invoice(s) relating to such services is received on or after the appointed day
Notwithstanding anything to the contrary contained in this Act
Section 191 : Provision for transfer of unutilized Cenvat Credit by taxable person having centralized registration under the earlier law
Cenvat Credit available with a taxable person having centralized registration (LTU as per Central Excise Act)
May transfer the credit to any of the registered taxable persons having the same PAN for which the centralized registration was obtained under the earlier law. . 
Study Circle – Cochin Chapter of Institute of Cost Accountants of India

21. Provisions Only in SGST Law
Section 192 : Tax paid on goods lying with agents to be allowed as credit
Section 193 : Tax paid on capital goods lying with agents to be allowed as credit
Where any goods / capital goods belonging to the principal are lying at the premises of the agent on the appointed day,
the agent shall be entitled to take credit of the tax paid on such goods subject to
the agent is a registered taxable person under this Act;
both the principal and the agent declare the details of stock of goods / capital goods lying with such agent on the date immediately preceding the appointed day in such form and manner and within such time as may be prescribed in this behalf;
the invoices for such goods had been issued not earlier than twelve months immediately preceding the appointed day; and
the principal has either reversed or not availed of the input tax credit in respect of such goods / capital goods . 
Study Circle – Cochin Chapter of Institute of Cost Accountants of India

22. Provisions Only in SGST Law
Section 194 : Treatment of branch transfers
Any amount of input tax credit reversed prior to the appointed day shall not be admissible as credit of input tax under this Act
notwithstanding anything to the contrary contained in this Act,
Section 195 : Goods sent on approval basis returned on or after the appointed day
Where any goods sent on approval basis,
not earlier than six months before the appointed day,
are rejected or not approved by the buyer and returned to the seller on or after the appointed day,
no tax shall be payable thereon if such goods are returned within six months from the appointed day:
The aforesaid period of six months may, on sufficient cause being shown, be extended by the competent authority for a further period not exceeding two months:
Tax shall be payable by the person returning the goods if such goods are liable to tax under this Act, and are returned after a period of six months or the extended period, as the case may be, from the appointed day: 
Tax shall be payable by the person who has sent the goods on approval basis if such goods are liable to tax under this Act, and are not returned within a period of six months or the extended period , as the case may be, from the appointed day . 
Study Circle – Cochin Chapter of Institute of Cost Accountants of India

23. TDS on Goods & CENVAT on Services
Section 196 : Deduction of tax source
Where a supplier has made any sale of goods in respect of which tax was required to be deducted at source under the earlier law and
has also issued an invoice for the same before the appointed day,
no deduction of tax at source under section 46 shall be made by the deductor under the said section where payment to the said supplier is made on or after the appointed day.
Section 197 : Transitional provisions for availing Cenvat credit in certain cases
Where any Cenvat credit availed for the input services provided under the earlier law has been reversed due to non-payment of the consideration within a period of three months,
such credit can be reclaimed provided that the taxable person has made the payment of the consideration for that supply of services within a period of three months from the appointed day. (Only in CGST Law) . 
Study Circle – Cochin Chapter of Institute of Cost Accountants of India

24. Thank You Next Session : 10th February 2017, Friday
Topic : Assessment, Demand & Recovery
Moderator : CMA Pushpy Murickan
Study Circle – Cochin Chapter of Institute of Cost Accountants of India