1. TRANSITIONAL PROVISIONS
IN GST
CA ANKUR GARG
B. COM., F.C.A.

2. SECTIONS GENERAL PROVISIONS [s.141]
MIGRATION OF EXISTING TAX PAYERS [s. 142]
CENVAT/VAT CREDIT
CENVAT/VAT Credit c/f in a return to be allowed as ITC [s.143]
Un-availed CENVAT/VAT Credit on capital goods, not c/f in a return, to be allowed in certain situations [s.144]
INPUT CREDIT ON STOCK
Of Inputs used for manufacture of goods exempted earlier but taxable now [ s.145]
Of inputs held by a person switching over from composition scheme
[s. 146]

3. SECTIONS AMOUNT PAYABLE FOR SWITCHING OVER TO COMPOSITION
SCHEME [s.147]
GOODS RETURN IN RESPECT OF EXEMPTED/DUTY PAID GOODS
Return of goods exempt earlier [s.148]
Return of goods on which duty/tax paid under earlier law [s. 149]
JOB WORK
Inputs/semi – finished/Finished removed earlier for job work returned after the appointed day [ s ]
PRICE REVISION….issue of supplementary invoices/debit & credit notes [s.153]
RECOVERY/REFUND [PENDING CLAIMS, CLAIM OF CENVAT/INPUT TAX, PROCEEDINGS RELATING TO OUTPUT DUTY LIABILITY, UPON ASSESSMENT/REVISION OF RETURNS] [s. 154 – s.158]
MISCELLANEOUS [WORKS CONTRACT, PROGRESSIVE/PERIODIC SUPPLY, RETENTION PAYMENTS, CREDIT DISTRIBUTION BY ISD, GOODS/CAPITAL GOODS LYING WITH AGENTS, BRANCH TRANSFERS, GOODS SENT ON APPROVAL BASIS, TDS] [ s.159 – 162 E]

4. Transitional Provisions
SECTION
PROVISION UNDER THE CGST/SGST ACT
141
General Provisions- Present Central/State Officers to be deemed GST Officers
142
Migration of existing taxpayers to GST
143
Amount of CENVAT credit carried forward in a return to be allowed as input tax credit
144
Unavailed Cenvat Credit on capital goods, not carried forward in a return, to be allowed in certain situations.
145
Credit of eligible duties and taxes in respect of inputs held in stock to be allowed in certain situations (Previously Exempted Goods)
146
Credit of eligible duties ant taxes on inputs held in stock to be allowed to a taxable person switching over from composition scheme.
147
Amount payable in the event of taxable person switching over to composition scheme.
148
Exempted goods returned to the place of business on or after the appointed day.
149
Duty paid goods returned to the place of business on or after the appointed day.

5. Transitional Provisions
SECTION
PROVISION UNDER THE CGST/SGST ACT
150
Inputs removed for job work and returned on or after the appointed day.
151
Semi-finished goods removed for job work and returned on or after appointed day
152
Finished goods removed for carrying out certain processes and returned on or after the appointed day.
153
Issue of supplementary invoices, debit or credit notes where price is revised in pursuance of a contract.
154
Pending refund claims to be disposed of under earlier law.
155
Claim of Cenvat credit to be disposed of under the earlier law.
156
Finalization of proceedings relating to output duty liability .
157
Treatment of the amount recovered or refused in pursuance of assessment or adjudication proceedings.
158
Treatment of the amount recovered or refunded pursuant to revision of returns.

6. Transitional Provisions
SECTION
PROVISION UNDER THE CGST/SGST ACT
159
Treatment of long term construction/works contracts
160
Progressive/periodic supply of goods or services
161
Treatment of retention payments
162
Credit distribution of service tax by ISD
162A
Tax paid on goods lying with agents to be allowed as credit
162B
Tax paid on capital goods lying with agents to be allowed as credit
162C
Treatment of branches transfers
162D
Goods sent on approval basis returned on or after the appointed day
162E
Deduction of tax source

7. GENERAL PROVISIONS [s.141]
Government(State/Central) Officials discharging functions under the State/Central Act relating to taxes on Goods /Services to be subsumed in GST & continuing in Office on the appointed day
Will be Deemed to be appointed as GST Officers/Competent authorities under the respective provisions of the act
&
Government (State/Central) are empowered to issue orders/make rules for smooth transition to GST so long such matters are not in conflict with the purposes of the Act

8. Migration of existing taxpayers to GST
All existing will be issues provisional registration certificate  valid for initial 6 months (Extendable by CG/SG, on recommendation of GST council
Information as prescribed to be submitted within the state 6 months / extended periods, as the case may be
Upon furnishing of required information, final registration will be granted
If information not furnished with in prescribed time period, the registration will be cancelled

9. MIGRATION OF EXISTING TAX PAYERS’ TO GST
Taxable Person furnishes required information within 6 months
FINAL REGISTRATION CERTIFICATE IS GRANTED
Issue of Provisional Certificate with validity of 6 months
Taxable Person does not furnish required information within 6 months
Provisional Certificate may be Cancelled
Provisional Certificate is cancelled upon dealer’s application [Not Liable under GST]
Provisional Certificate is DEEMED NOT TO HAVE BEEN ISSUED

10. CENVAT/VAT CREDIT[s.143 - 147]
C/F IN THE LAST RETURN
UNAVAILED CREDIT ON
CAPITAL GOODS
PRE GST
CENVAT/
VAT CREDIT
MANUFACTURED GOODS EXEMPT EARLIER - TAXABLE NOW
ENJOYED COMPOSITION PRE GST, NOW UNDER NORMAL SCHEME
WAS UNDER NORMAL SCHEME PRE GST, NOW OPTS FOR COMPOSITION

11. Amount of Cenvat credit carried forward in a return
Closing balance of eligible Cenvat credit/ vat as per last return filed under existing tax regime allowed to be taken in GST, provided such ITC is also admissible as per CGST & SGST ACT.
Eligibility of Cenvat credit/ VAT as per existing law and the eligibility of ITC under the GST provisions to be matched.
Wrongly availed ITC to be recovered as an arrear of tax under GST Law. Should/Must have been reflected as ITC carried forward in the Return filed for the Last Month/Period under the Existing Law
Difficult to ascertain eligible amount of ITC, considering the eligibility criteria as per both the laws. The ITC will be available as a balance in the Electronic Cash Ledger of the Tax Payer
Unavailed admissible Cenvat credit/ITC on capital goods can be availed in GST. Such CC/ ITC must be admissible as per Cenvat Credit Rule, 2004 and also under CGST/ SGST Law. Wrongly availed ITC to be recovered as an arrear of tax under GST Law.

12. CREDIT WILL BE AVAILABLE IN GST
CENVAT/VAT CREDIT [s ]
CENVAT/VAT CREDIT
CARRIED FORWARD
CREDIT WILL BE AVAILABLE IN GST
UNAVAILED CENVAT/VAT CREDIT ON CAPITAL GOODS
NOT CARRIED FORWARD. IF NO CREDIT TAKEN PREVIOUSLY THEN FULL CREDIT
It must be understood that CENVAT Credit can only be availed as CGST and VAT Credit as SGST in Electronic Credit Ledger. Under NO Circumstances this Credit can be interchanged
The amount will be recoverable as an arrear of tax under GST if it is recoverable due to any proceeding instituted against the taxable person under the earlier law whether before or after the appointed day.

13. INPUT CREDIT ON STOCK OF GOODS HELD [s.145 - 146]
Earlier Exempted OR Person Not Liable to be Registered but Taxable under GST
Earlier in Composition but under Normal scheme in GST
SHALL BE ENTITLED for Credit of eligible duties/taxes/VAT on
Inputs held in stock on the
appointed day
Inputs contained in semi-finished /finished goods held in stock on the appointed day
(Only Inputs and NOT Capital Goods)
PROVIDED

14. INPUT CREDIT ON STOCK OF GOODS HELD [s.145 - 146]
Inputs are used for making taxable supplies
Inputs were otherwise available for CENVAT/VAT Credit if the taxable person had not been a manufacturer of exempted goods/not in Composition/had liability under the earlier law & credit is available on it in GST
Is in possession of valid invoice, etc which were issued not earlier than 12 months from the appointed day
Amount of credit to be calculated as per the generally accepted accounting principles (in short GAAP)
The amount will be recoverable as an arrear of tax under GST if it is recoverable due to any proceeding instituted under the earlier law
Registration under GST Law is Mandatory, else the discussion on claim of Transitional Credit would not be relevant.

15. INPUT CREDIT ON STOCK OF GOODS HELD[s.147]
Not in Composition Scheme earlier & having C/F eligible credit
Moves to Composition Scheme in GST
Shall Debit in the electronic credit/cash ledger
Amount equivalent to the credit of input
tax in respect of
Inputs held in stock on the appointed day
Inputs contained in semi-finished /finished goods held in stock on the appointed day
NOTE: Any amount of ITC remaining in the Electronic Credit Ledger after the payment of such amount, will lapse. This is an exception to Section 143

16. GOODS RETURN [s ]
When,
Goods were removed/sold within 6 months prior to the appointed day &
Returned to the place of business within 6 months from the appointed day. If returned after 6 Months, Tax shall be payable. This implies that the difference between date of removal and the return thereto can not exceed 1 Year.
Proper Officer can satisfactorily identify the goods, then for
Goods on which Duty/Tax paid under the earlier law
Goods which were Earlier Exempted but Taxable under GST
No Tax is payable by the person returning the Goods
No Tax is payable by the person returning the Goods
Taxable Person receiving such goods within 6 months entitled to credit of duty/tax paid earlier at the time of removal/sale

17. #Provided goods are taxable under the GST Law
JOB WORK [s ] (Inputs/Semi-finished sent for Job Work and Finished goods sent for tests or any other process not amounting to manufacture
Conditions:
Removal/Dispatch to the job worker prior to the appointed day&
Returned within six months from the appointed day/extended period (not more than 2 months)to same factory/place of business
Manufacturer & Job Worker both declare the details of Inputs/Semi-finished/Finished Goods held in stock by the Job Worker on the appointed date. (Declaration Compulsory)
No Tax is payable
#Tax Payable by the Job – worker/ person returning the goods
Returned beyond six months / extended period
Manufacturer can transfer finished goods from such premises to the premises of any regd. Taxable person for Export – without tax and Domestic- On payment of GST
#Tax Payable by the Manufacturer
Not Returned within six months /extended period
#Provided goods are taxable under the GST Law

18. For Upward Revision For Downward Revision
PRICE REVISION [s.153]
Price is REVISED after the appointed day in respect of a previous contract
Documents that may be issued by the supplier (To be issued within 30 days of such price revision)
Supplementary Invoice/Debit Note
For Upward Revision
Supplementary Invoice/Credit Note Recipient to reduce his ITC correspondingly
For Downward Revision
conditional
Documents shall be deemed to have been issued in respect
of an outward supply made under GST

19. REFUND/RECOVERY [s ]
Shall be paid in Cash (CGST) & as per the provisions of earlier law (SGST)
REFUND -
Pending or accruing from appeal, etc
Rejected (Fully or Partially) Claim of Refund to LAPSE
RECOVERY resulting from proceedings under the earlier law
To be Recovered as an arrear of GST
Amount refundable/recoverable shall not be admissible as ITC under GST

20. Refund Cash/ Recovery in GST
REFUND/RECOVERY [s ]
CENVAT/VAT Credit as per Earlier Law
Assessment/Adjudication Proceeding as per Earlier Laws(any tax/penalty/interest)
Proceeding of appeal, revision, review or reference initiated before the appointed day to be disposed of as per the earlier law
Refund Cash/ Recovery in GST
Liability of Output Duty/ Tax as per Earlier Law
Revision of return as per Earlier Law
PENDING REFUND CLAIMS FILED BEFORE THE APPOINTED DAY to be disposed of as per the provisions of earlier law (154)

21. LONG TERM CONSTRUCTION / WORKS CONTRACT # PROGRESSIVE /PERIODIC SUPPLY
MISCELLANEOUS 1
LONG TERM CONSTRUCTION / WORKS CONTRACT 2
# PROGRESSIVE /PERIODIC SUPPLY 3
# RETENTION PAYMENTS
s. 159
s. 160
s. 161
Goods and/or services supplied after the appointed date
Contract entered prior to the appointed date will not matter
Supply to be taxed under GST Law
Consideration received prior to the appointed day
Duty/tax paid under the earlier law
No Tax to be paid under GST
Goods and/or services made before the appointed date
Part Consideration received on/after the appointed day
Full duty/tax paid under the earlier law 1 2 3
# Applicable irrespective of the provisions relating to Time of Supply of Goods & Services in the GST Law

22. MISCELLANEOUS CREDIT DISTRIBUTION OF SERVICE TAX BY INPUT SERVICE DISTRIBUTORS
It is AN OFFICE of the supplier of goods/services which receives tax invoices for the purpose of distribution of credit to a SUPPLIER of taxable goods/services having same PAN
INPUT SERVICE DISTRIBUTOR
CREDIT of Service Tax
RECEIVED - PRE GST
will be available for distribution as credit in GST
even if the invoices are received on or after the appointed day
The provision overrides all the other provisions contrary to it

23. MISCELLANEOUS TAX PAID ON GOODS/ CAPITAL GOODS LYING WITH AGENTS TO BE ALLOWED AS CREDIT [s.162A – 162B]
Goods belonging to Principal lying with the agent on the appointed day
Conditions:
Agent is registered taxable person under GST
Principal & Agent both declare the details of stock of Goods lying with the agent immediately preceding the appointed day
Invoices were issued not earlier than 12 months prior to the appointed day
Principal has either reversed or not availed of the ITC in respect of such goods
Agent entitled to take transitional credit of tax paid on such goods/capital goods
--- this provision is specific to SGST Law

24. MISCELLANEOUS TREATMENT OF BRANCH TRANSFERS [s. 162 C]
Input Tax Credit reversed prior to the appointed day not admissible as Input Tax Credit under the GST Law
Branch Transfers/ Stock Transfers under VAT Act
NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN THE GST ACT
--- this provision is specific to SGST Law

25. --- this provision is specific to SGST Law
MISCELLANEOUS
GOODS SENT ON APPROVAL BASIS REJECTED/RETURNED [s.162D]
Goods Sent on approval basis
Rejected Goods returned within six months
No Tax is payable on returned goods
Not earlier than six months prior to the appointed dated
Rejected Goods returned after six months/ extended period(Max. 2 months)
Goods taxable under GST
Tax is payable by the person returning the goods
Rejected/Not Approved by the buyer
Goods Rejected but not returned within six months/ extended period
Goods taxable under GST
Tax is payable by the person who sent the goods on approval basis
--- this provision is specific to SGST Law

26. MISCELLANEOUS DEDUCTION OF TAX AT SOURCE [s. 162E]
Goods sold/invoice issued prior to the appointed day
Payment made against such sale, on or after the appointed day
Tax was required to be deducted on such sale under earlier law
Will not be considered for TDS under GST Law
It provides that merely because payment is made to the supplier after the date of introduction of GST, the TDS provisions u/s 37 of GST will not apply. (In other words, no tax would be deductible at the time of making payment to the supplier)

27. THANK YOU
For any suggestions or feedback please contact at