1. GOODS AND SERVICES TAX TRANSITIONAL PROVISIONS

2. Journey so far
CGST/ IGST/ UTGST/ SGST Acts finalized and 7 final rules and draft formats released
GST Compensation Cess rates and Chapter wise rate wise GST schedule decided
Tax slabs for other items and services to be decided
Fitment of more than items in various tax slabs
19% of items taxed over 18% GST tax slab

3. Item fitment in tax slabs (%)
(Exempted) 7%
(28% Tax Slab)
19%
(5% Tax Slab)
14%
(12% Tax Slab)
17%
(18% Tax Slab)
43%

4. Migration of existing tax payers- Sec 139
Every person holding a valid PAN
Provisional RC
Final RC
Existing Regime
GST Regime
Note: The enrolment window will reopen at a later date for taxpayers who could not
enrol themselves as well as those who enroled but did not sign the enrolment form.

5. Conditions to carry forward input tax credit- Sec 140(1)
ITC/CENVAT CREDIT C/F
ELECTRONIC CREDIT LEDGER
Carry forward only eligible ITC/CENVAT Credits;
All returns for preceding 6 months
filed;
ITC/CENVAT Credit not related to Exempted goods
Credit admissible as ITC under GST;
Admissible CENVAT Credit to be reflected in the last return filed
Application in Form GST TRAN 1 within 90 days
Existing Regime
GST Regime

6. Restriction on carry forward of input tax credit- sec 140(1)
Particulars
Amount (INR)
ITC Balance as per last VAT Return
1,000
Input credit attributable to the value of claims u/s 3, 5(3), 6, 6A and 8(8) of Central Sales Tax Act, 1956 (CST Act)
500
Less:
Input credit attributable to the value of declarations received in
Form C/F/E/H/I specified in Rule 12 of CST Act
(300)
Input credit attributable to the value of claim u/s 3, 5(3), 6, 6A and 8(8) of CST Act for which declarations are pending as on the appointed day. (Note: Will be refunded post submission of forms)
(200)
Total ITC allowed to be carried forward as per the provisions
800

7. UNAVAILED CENVAT CREDIT ON
Carry forward of Unavailed Cenvat credit on capital goods- sec 140(2)
UNAVAILED CENVAT CREDIT ON
CAPITAL GOODS
ELECTRONIC CREDIT LEDGER
Credit admissible as CENVAT credit under the existing law;
Not paying tax under composition levy;
Credit admissible as ITC under GST;
Unavailed CENVAT credit in respect of capital goods is not carried forward in the return
Form GST TRAN 1:
Specify amount availed/utilised and yet to be availed/utilised for every item
Existing Regime
GST Regime

8. Credit of inputs held in stock on the appointed day- sec 140(3)
Unregistered person under existing law
Manufacturer of exempted goods
Provider of exempted services
Provider of Works Contract services and availing benefits of Not. No. 26/012-ST
First stage dealer
Second stage dealer
Registered importer
Depot of a manufacturer
Now Registered Person
Existing Regime
GST Regime

9. ITC available on such inputs under GST
Inputs held in stock on the appointed day – conditions attached- Sec 140(3)
Inputs/goods used or intended to be used for making taxable supplies under GST
ITC available on such inputs under GST
Availability of invoices evidencing payment of tax or duty
Supplier of services not eligible for abatement under GST
Invoices issued not earlier than 12 months prior to appointed day

10. Inputs held in stock on the appointed day – A scheme for traders- Sec 140(3)
A registered person other than a manufacturer or supplier of services i.e. a trader can claim such credit at the rate of 60 per cent of central tax/ state tax applicable on supply of such goods within 6 tax periods from the appointed day even though he is not in possession of invoice evidencing payment of duty or tax, if he passes on the benefit of such credit by way of reduced prices to the recipient.
This can be understood by studying the following tables:
Particulars
Amount
Value of stock held
100
Add: Excise Duty paid
12.5
Add: VAT paid
Total Value (Cost to Supplier)
125
Particulars
Amount
Net Selling Price
200
Add: C/SGST at 12% 24
Total Commercial value
224
Less: Eligible credit at 60% of 24
(14.4)
Gross Selling Price
209.6
Existing Regime
GST Regime

11. EXEMPT – GOODS / SERVICES
Credit of eligible duties on supply of taxable and exempted goods - Sec 140(4)
EXEMPT – GOODS / SERVICES
CENVAT Credit carried forward in the return as per provision of section 140(1)
Taxable goods/services
Manufacturer or supplier of services
Exempted goods/services
Credit of input held in stock as per provision of Section 140(3)
Existing Regime
GST Regime

12. Credit of input for services received after the appointed day- Sec 140(5)
Duties or taxes paid
under existing law
Inputs or Inputs Services received
June 25,2017
July 05, 2017
July 01, 2017
July 31, 2017
Invoice issued and inputs dispatched
Appointed
Day
Inputs received
with invoice
Invoice is recorded in books within 30 days from appointed date, unless additional 30 days granted
Existing Regime
GST Regime

13. Credit of input tax credit in case of composition dealers- Sec 140(6)
ITC/CENVAT CREDIT C/F
ELECTRONIC CREDIT LEDGER
Inputs As such
Conditions as per 140(3)
Semi Finished
ABC- Composition Scheme
Finished Goods
Existing Regime
GST Regime

14. Last return filed within 3 months from appointed day
Credit of input tax credit carried forward in a return by person having centralized registration or ISD- Sec 140(7) and (8)
ITC/CENVAT CREDIT C/F
ELECTRONIC CREDIT LEDGER
Branch A Delhi
Last return filed within 3 months from appointed day
Branch B Bangalore
ABC Limited Centralised Registration in Mumbai
Branch C Gujarat
Existing Regime
GST Regime

15. Material removed for job work/ other process - Sec 141
Inputs, Semi- Finished goods or Finished goods
sent to Job worker for further processing, testing, repairing, etc.
No tax payable by person returning the goods
In such cases
Conditions:
Goods returned within 6 months by Job worker from Appointed day (Unless, additional 2 months granted)
Manufacturer and Job worker both must declare such goods in FORM GST TRAN-1
July 01, 2017
Appointed Day
Before
If not returned, ITC availed by the manufacturer on inputs liable to be recovered u/s 142(8)(a)

16. Goods sold by manufacturer in the existing regime and returned within 6 months from the appointed day - Sec 142(1)
If supplies were sent to an unregistered dealer
If supplies were sent
to a registered dealer
Manufacturer can claim refund of duty paid
Termed as outward supply in the hands of dealer – Manufacturer can claim ITC
Jan 1, 2017
July 1, 2017
Dec 31, 2017
Sold by manufacturer prior to appointed day
Returned by dealer post appointed
day
Existing Regime
GST Regime

17. Section 142 : Miscellaneous Transition Provision
Goods cleared not before six months from the appointed day if returned by unregistered person within 6 months from the appointed day - Refund of tax paid under earlier law
Goods returned by registered person – Deemed Supply
Goods or services where price increases after the appointed day
- Additional tax to be paid by issue of debit note or
supplementary invoice to be issued within 30 days
Goods or services where price decreases after the appointed day – Credit note be issued within 30 days upon which taxpayer shall be allowed to reduce the tax liability 17
Gaurav Shah & Co, Chartered Accountants

18. Section 142 : Miscellaneous Transition Provision
Refund under the existing laws to be disposed as per provision of existing law
Refund of tax paid under existing law to be paid under the provisions of earlier law even if application is made after the appointed day
Refund of tax of services not provided but tax paid under the existing law to be refunded under the provisions of existing law
Appeal, Review or reference relating to claim of CENVAT credit or output duty liability shall be disposed of under earlier law 18
Gaurav Shah & Co, Chartered Accountants

19. Section 142 : Miscellaneous Transition Provision
Arrears to be recovered, including that of CENVAT, due to any assessment, adjudication or revision of return be recovered as an arrear of GST, unless recovered under the existing law.
Goods or services supplied after the appointed day will be taxed under GST even if contract is entered prior to appointed day ( except where point of taxation has occurred in the existing law)
Goods sent, not before six months from the appointed day, on approval basis are returned back in 6 months - No GST
If tax was deducted under earlier law and invoice also issued, no further TDS even if payment is made after the appointed day. 19
Gaurav Shah & Co, Chartered Accountants

20. 12-Point Impact on manufacturers
Multiple CE registration can be avoided in same state
Level playing field for Organized and unorganized sector
Single point of compliance - VAT + CST + Excise under existing regime
Reduction in cascading effect but Working Capital increase- CST Purchases

21. 12-Point Impact on manufacturers
Job worker charges liable to GST
Input Tax Credit Reversal- Non-Payment
Distinct Person Concept
Area-based exemption to discontinue

22. 12-Point Impact on manufacturers
Matching Concept
Robust ERP Software required for B2B reporting including invoice-wise, HSN-wise reporting
Unregistered dealer procurements liable to GST under reverse charge
Advances liable to GST Vs. excise/sale applicable only on removal of goods from plant or at the time of inovice