1. TRANSITIONAL PROVISIONS
CA Praveen Kumar K
© Jain & Mohan, Chartered Accountants

2. Coverage S. No Topic 1 Input Tax Credit – S.140 2 Job Work – S.141 3
Miscellaneous – S.142

3. S. 140 – Input Tax Credit

4. S. 140 – Returns Returns – S. 140 (1)
Registered Taxable Person (NOT being CoT) +
Credits in earlier returns
Notes:
Credits should be eligible under GST Law
Last 6 Months Returns’ filed in TOTO
NOT relating to goods manufactured and cleared under Notified EN
Rules:
value of claims under CST Act
value of declarations submitted in support of claims
(Return -> Return)

5. S. 140 – Stock Credit of Stock of Inputs in RM/ WiP/ FG– 140 (3)
Registered Taxable person +
Not liable for registration under earlier law / manuf. Of exempted goods / pro. of exempted services / WC + Abat. /FSD / SSD / RI
Notes:
Such stock intended for making taxable supplies
Credits should be eligible under GST law
Possession of Invoice evidencing payment of duty (exception for traders – benefit passed on)
Document not older than 12 months
Supp. of Sr. is NOT Eligible for Abat.
Rules
Credit 40% of central Tax if goods were not wholly exempt / Nil Rated under Excise
Credit available after payment of Central Tax (i.e. reimbursement)
Scheme applicable for six tax periods from AD
Document for procurement of such goods is available
Statement at the end of each tax period
Stock to be separately identifiable.
(Direct credit in GST Return)

6. (Direct credit in GST Return)
S. 140 – Capital Goods
Provision
Procedure
Registered Taxable Person
(NOT being CoT) +
Unavailed credit
Not carried forward in return
Admissible under both laws
In respect of every item of capital goods
tax availed / utilized under each of earlier law
tax yet to be availed / utilized under each of earlier law
(Direct credit in GST Return)

7. (Direct credit in GST Return)
S. 140 –Transit
Provision
Procedure
Registered Taxable Person +
I/IS received after appointed day (not required for CG)
Taxes paid before appointed day
Recorded in BoA in 30 days (+30 days extension) of appointed day
Furnish a Statement
(Direct credit in GST Return)
Name of Supplier, Serial Number & date of Invoice
Description, Quantity & Value of G/S
Amount of eligible taxes / duties
Date on which receipt of G/S recorded in BoA of the recipient

8. S. 140 (6) – Composition to Normal Scheme
S. 140 – Miscellaneous
S. 140 (6) – Composition to Normal Scheme
Registered Taxable person +
Paying tax under CoT under earlier laws
Credit of I of stock on hand(Not for IS & CG)
Notes:
Such stock intended for making taxable supplies
NOT opting for CoT under GST
Credits should be eligible under GST law
Possession of Invoice evidencing payment of taxes (no relaxation)
Invoice is not older than 12 months

9. S. 140 – Miscellaneous Input Service Distributor S. 140 (7)
Payment of Input Services S. 140 (9)
Services received prior to AD +
Distributed as GST Credit
CCR reversed due to non-payment within 3m of Invoice date
payment is made in 3m of AD =
Take ITC in GST Return
Centralized Registration S. 140 (8)
CCR c/f in Return filed before AD or 3 months of AD
(Org. Return / Revised Return only if less than Org. Return) +
Credit is admissible under GST Law
Credit Transfer to Any Regd. Persons (i.e. Branch Office)

10. S. 141 – Job Work Inputs Semi-Finished Goods Finsihed Goods
Removed to a JW +
For any purpose
Returned in 6m from AD
(2m extension) =
NO TAX PAYABLE
(If NOT ITC shall be recovered under GST)
Removed SFG to any premises
For Manf. Process
Returned / direct removal in 6m
Removed FG to any premises
For non- Manf. Process
Declaration of stock on AD to be given by manufacturer & other person (Form GST TRAN-01)

11. S. 142 – Misc. S.No Head Particulars 1
Dutiable Goods cleared 6m before AD +
returned in 6m after AD
duty paid under earlier law
If returned from URD  Apply for refund
If returned from RD  RD to charge GST 2a
Contract entered prior to AD
Price revision upwards
Debit note under GST within 30 days of revision 2b
Price revision downwards
(ex. Deficiency in Service)
Credit note under GST within 30 days of revision
Reduction in tax liability only if ITC reversed by recipient
3/4
Refund applied in earlier law
To be paid in cash.
If rejected no ITC
(to be reflected in BS) 5
Excess amount paid as Service Tax
Refund route, No self adjustment.

12. S. 142 – Misc. S.No Head Particulars 6
Proceedings/appeals initiated under earlier law for CENVAT
To be paid under earlier law in cash
Recovered under old law / new law. 7
Proceedings/appeals initiated under earlier law for Output Tax 8
Adjudicating proceedings under earlier law 9
Revision of return under earlier law
Increase in liability  recovery under old law / new law + no ITC is admissible
Decrease in liability  Refund in cash. (for return revised in time limit)

13. Time of Supply as per GST
S. 142 – Overlapping.
S.No
Head
Particulars 10
Supply made after AD +
Taxes under earlier law not paid
Pay GST
11(c)
Taxes under earlier law paid
Take credit of output tax paid under earlier law
11(a/b)
Supply made prior to AD
Levy of VAT / ST
Time of Supply as per GST
GST not payable

14. S. 142 – Goods for Approval / TDS
S.No
Head
Particulars 12
Goods sent on approval basis +
6m prior to AD
Returned to Seller
within 6m (+2m) from AD
No Tax payable
(Declaration–Form GST TRAN-01)
If goods returned after 6m from AD
Tax payable by person returning goods
If goods not returned
Tax payable by person sending the goods 13
Sale liable for TDS
Invoice raised before AD
TDS not liable under GST

15. Food for thought… S.No Particulars 1
Pending litigations to be given thought 2
WcT stock credit only for 26/2012 3
Relook at credits not taken
Dept. audit ex Windmill
Credits taken to the extent required
Credit taken on payment basis
SP don’t take credit thinking they are not registered under ED
Invoices kept in stores pending for some mismatch (Reco between GRN & CCR)
CHA Bills
Inputs returned after 180 days falling after AD, recredit not available
Even if Invoices addressed to Sales Office, SP can take credit
Higher reversal of CENVAT for common credits

16. Food for thought… S.No Particulars 4
Audit for reason for accumulation of credit
100% taken in CCR, Dept reversal in Dec 17, re-credit not available
2% Credit taken under Excise
Amortization of tools etc not done 5
Overlapping contracts option to pay ST / VAT 6
Centralized Accounting not possible the same way
(you can still register in Home branch & supply across India) 7
Credit of CG not taken, no time limit applies (anti profit clause to be kept in mind) 8
Procurement from Excise Dealers 9
Transfer of factory / change in ownership – enter into return before AD

17. Food for thought… S.No Particulars 10
Advance received in Pre-GST Era, ST not paid, Supply made in GST era, GST Paid, Dept. may recover ST – revenue neutrality also cannot be claimed 11
Not covered in Transitional Provisions
Payment not made in 90d & CCR not reversed  recovered by Department, CCR not available when payment is made. 12
Pay RcM before AD, despite PoT being after AD 13
Tax payment under GST is not for HSN/STC it is for CGST/SGST/IGST 14
Audit of Cenvat Credit 15
Proper accounting of CCR for R-6, reversal in CCR & claim in GST 16
ITC of tax paid u/s 12 in VAT for June 2017 ?

18. Food for thought… S.No Particulars 17
Stock Transfer – Partial rebating – Unsold Stock on 18
Stock Transfer 110% of Cost – Rule 8 – Short payment to avoid 19
Goods sent on exhibition / Display – Transitional provision doesn’t cover this scenario 20
Surrender Registration if not required 21
Branches of different States to be included in Centralized Registration 22
Supplementary Invoice post GST may be beneficial 23
If CA below threshold better to get registered, otherwise client will have to pay under RcM

19. ROAD TO GST – MILESTONES

20. CA Praveen Kumar K 9865121775 praveen.ca88@yahoo.com
© Jain & Mohan, Chartered Accountants