1. © Indirect Taxes Committee, ICAI
Goods and Services Tax (GST) Transitional Precaution: Filing of last return under present indirect tax regime and filing of first return under GST regime
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2. Issue: Input Tax Credit (Ref: Sec 167 & 168)
Amount of CENVAT credit carried forward in a return to be allowed as input tax credit.
Unavailed cenvat credit on capital goods, not carried forward in a return, to be allowed in certain situations
Precautions: 
make sure - all eligible credits are claimed in the last return (service tax return, excise return, state VAT return, Entry Tax return), 
In case of doubtful items, may be advisable to claim the credit (may not be utilized), and carry forward to GST regime,
make sure that all the taxpaying documents (like invoice) are in possession, 
© Indirect Taxes Committee, ICAI

3. © Indirect Taxes Committee, ICAI
Cont...
carry out CENVAT credit audit to ensure no credit is missed out,
In case of ambiguity on service tax under RCM, better to pay the same and avail credit (if eligible),
there should be proper quantification of availment of credit (i.e. 50% as per present law) and Unavailed credit of capital goods which is to be availed in GST regime.
if any capital goods is purchased in June’17, under present regime only 50% credit can be claimed and the balance may be claimed in July’17 and onwards (although the same financial year).
© Indirect Taxes Committee, ICAI

4. Manufacturer Service provider Trader
Sec 169: Credit in respect of inputs held in stock for the first timers
Applicability
Manufacturer
Mfg and selling exempted goods
May be registered under Central excise but not VAT or vice-versa
Service provider
Providing exempted service or providing works contract service
May be registered under state VAT act but not under service tax laws since no C.C available
Trader
Engaged in sale of exempted goods only
© Indirect Taxes Committee, ICAI

5. © Indirect Taxes Committee, ICAI
Sec 169 Cont...
Precautions: 
Prepare stock statement summary as on (determining the quantum, value, involvement of eligible duties, taxes and state VAT)
Make sure whether the taxpaying documents are available before claiming any credit,
Such taxpaying documents should not have been issued earlier than twelve months [stock level may be maintained at minimum level],
Pricing policy – such stock used / intended to be used for making taxable supplies must lead to reduction in prices to the extent of availment of benefit of ITC.
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6. © Indirect Taxes Committee, ICAI
Sec: 170 Credit in respect of Common Inputs held in Stock for Exempted goods becoming taxable
Applicability: Applies to central excise or service tax assessees who are manufacturing non-exempted & exempted goods or providing non-exempted & exempted services
Precautions:
Prepare stock statement summary as on in order to claim credit of eligible duties and taxes as attributable to manufacture of exempted goods or provision of exempted services.
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7. Sec 171: Credit in respect of inputs or input services during transit
Tax paid
Appointed date
Input/ input services received
Sec 171 Applicable
Given the invoice/ tax paying document are recorded within 30 days of appointed day
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8. © Indirect Taxes Committee, ICAI
Precautions:
Ensure that the duty / tax in respect of the taxpaying document (i.e. against the invoice) has been deposited. A certificate may be obtained in this regard from the supplier.
Ensure that the invoice is duly received and recorded in the books within
Ensure that double credit is not availed -  
once in the earlier regime (may be when the payment is made) and
again in the GST regime (may be when the invoice is received)
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9. © Indirect Taxes Committee, ICAI
Section 172: Credit i.r.o. inputs held in stock to a taxable person switching over from composition scheme
Central Excise
Compounded levy scheme – On stainless steel pattis / pattas under chapter 72 – option to pay duty on the basis of cold rolling machine installed for cold rolling of these goods. (monthly duty liability)
Service Tax
No such composition scheme
WB VAT Act
A dealer is allowed to pay tax under composition scheme.
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10. © Indirect Taxes Committee, ICAI
Precautions:
Prepare stock statement summary as on (determining the quantum, value, involvement of eligible duties and taxes) in order to claim credit in respect of inputs attributable to manufacture of exempted goods or provision of exempted services.
© Indirect Taxes Committee, ICAI

11. Before filing of return
Sec 185: Treatment of Amount recovered or refunded pursuant to Revision of Returns
Precautions
Before filing of return
After filing of return
Output liability –
Ensure that all sale invoices are properly and timely recorded in the books so that the same can be tallied with the last return filed for the relevant period.
On any issue, In case of ambiguity regarding taxability, may be decided to pay tax so that the customer (in case of B2B transaction) can avail the benefit of input tax credit.
Review the last return with the books of accounts, if any invoice is missed, for payment of tax
© Indirect Taxes Committee, ICAI

12. Before filing of return
Cont...
Before filing of return
After filing of return
Cenvat credit –
Need to ensure that credit of eligible duties and taxes are availed in the last return
Need to review if any credit has been missed to avail in the last return filed under the earlier regime so that the same can be availed.
© Indirect Taxes Committee, ICAI

13. Sec 190: Credit distribution of service tax by ISD
Input services received
Appointed date
Invoice received
Sec 190 Applicable
Precautions:
Before filing of last return of ISD under earlier law, tag the invoices which are considered for credit distribution in respect of service received till
Further before filing of first return of ISD under GST regime, tag the invoices which are received after against the services received upto which were not considered under earlier law.
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14. © Indirect Taxes Committee, ICAI
Sec 191: Provision for transfer of unutilized Cenvat Credit by taxable person having centralized registration under the earlier law
Provision:
Credit shall be carried forward as per last return,
Provided return must be filed within 3 months from If return revised then reduced credit shall be allowed,
Credit may be transferred to any of the registered taxable person having same PAN for which centralized registration was obtained
© Indirect Taxes Committee, ICAI

15. © Indirect Taxes Committee, ICAI
Cont...
Precautions:
Ensure before filing of return all the eligible credit is availed in the return,
If the return is required to be revised, Make sure the same is done within 3 months from
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16. © Indirect Taxes Committee, ICAI
Issue 2: Return of exempted and duty paid goods on or after the appointed day [Ref: Sec 173 & 174]
Filing of last return under old regime
Filing of return under GST regime
Ensure that proper disclosure for removal / sale of exempted goods has been made in the last return[S 173].
Ensure that proper details of the dutiable / taxable goods are maintained so that if at all such goods are returned within 6 months refund can be claimed [S 174].
Ensure no exempted goods should return after six (6) months from ,
If duty / tax paid goods are returned, need to ensure that no adjustment against output liability is made in the GST regime as the same will be eligible for refund only.
© Indirect Taxes Committee, ICAI

17. Central Excise Assessee
Issue 3: Removal of inputs, semi-finished goods and finished goods for job work [Sec ]
Central Excise Assessee
Filing of last return under old regime
Filing of return under GST regime
Ensure that all inputs due to be received within , are actually received. If not, then make sure that proportionate credit is reversed and reflected in the last return.
Identify the stock lying with job worker for less than six months.
For all consignments received from j/w, check whether the date of dispatch was less than six months from or more.
Ensure before making any supply from the premise of the job worker that the place of business of the j/w has been declared as additional place of business in case the job worker is unregistered.
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18. © Indirect Taxes Committee, ICAI
Cont...
WB VAT Assessee
Filing of last return under old regime
Filing of return under GST regime
Ensure whether any goods removed to job worker on or before are received back and proper records are required to maintain to establish that such goods are received back within prescribed period (90 days in case of WBVAT) otherwise ITC may be required to be reversed.
SGST – Such goods are required to be returned with 6 months from to avoid tax on return supply from the job worker.
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19. © Indirect Taxes Committee, ICAI
Issue 4: Taxability of goods/ services in certain cases [Ref: Sec 188 – 189]
Point Of Taxation
Central Excise
Service tax
WB VAT
Levy is on manufacture but POT on removal
Levy is on provision of service, POT earlier of the following
Date of invoice (provided invoice issued within 30 days of completion of service),
Date of payment,
Levy is on sale
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20. © Indirect Taxes Committee, ICAI
Cont...
Central Excise
Service Tax
WB VAT
Ensure all removals are shown in the last return i.e. removals made till
Ensure all the invoices are issued in respect of completed services within and reflected in the return
Ensure service tax on the advance amount is also paid and properly reflected in the return,
Preserve proper documents specifically in respect of advance receipts to avoid demand on the same again in GST regime.
VAT is payable on sales – if any goods are simply delivered to recipient on or after against which risk and reward has already been transferred within , then such sales should be disclosed in relevant return
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21. © Indirect Taxes Committee, ICAI
Inward Supply of Goods
Local
Purchase
From a RTP
CGST/SGST
Inputs CG
None
Inter - state  
Purchase 
IGST
Inter State
Unit transfer   
Purchase/RCM
CGST/SGST 
Unit transfer/RCM
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22. © Indirect Taxes Committee, ICAI
Inward Supply of Goods
Import
Purchase
IGST
Inputs CG
None
W/O Consideration
 Local
From URP
From Comp Dealer
 Debit Notes 
 Credit Notes 
 Nil
 Exempt
 Non GST 
© Indirect Taxes Committee, ICAI

23. Outward Supply of Goods
Local
Sale
CSGT/SGST
DN/CN
CGST/SGST
NIL/Ex/Non GST
Inter state
to a RTP
IGST
Inter State
to a consumer Inv > 2.5
to a consumer Inv <= 2.5
to a consumer
© Indirect Taxes Committee, ICAI

24. Outward Supply of Goods Invoice (agst Adv recd earlier)
Inter state
Unit transfer
IGST
NIL/Ex/Non GST
Local
Deemed Export
CSGT/SGST
No tax
Export
Advance
CGST/SGST
Nil/Ex/Non GST
Nil/ Ex / Non GST
Invoice (agst Adv recd earlier)
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25. Summary Section Topic Precautions Sec 170
Bifurcation of Inventory of Raw Materials/ Packaging Materials/ Consumables
Dutiable - Credit already taken
Exempted- Credit to be taken under GST
Sec 171
Stock In Transit
Whole amount
Dutiable &
Exempted
Stock + Invoice Received within 30 days
Do not avail double credit
Sec 172
Composition
States/Units/Products covered under Composition

26. Contd... Sec 175- 177 Stock with Job Worker Declaration Sec 185
Returns
Books and Returns should tally
Sec 188 and 189
Point of Taxation
Reconcile books and return
Proper Invoicing
Proper Disclosure
Sec 190
Credit distribution by ISD
Tag invoices to provide proper bifurcation

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