INTRODUCTION

Recently, CBIC has extended GST TRAN-1 Due Date to 31st January 2019 for the class of registered persons who faced technical difficulties while filing their return. GST TRAN-1 last date has not been extended in general. Only those taxpayers who have been identified in the circular issued shall be allowed to complete the process of filing GST TRAN-1. Earlier, the GST TRAN-1 Due Date was November 30th, 2017, but considering the fact that the formalities have not yet been complied by the taxpayers the same has been extended. The decision relating to the extension of the due date shall benefit 17,573 taxpayers. These taxpayers shall be able to avail Rs. 2582.98 cr. as CGST credit and Rs. 1112.77 cr. as SGST credit.

STEPS FOR FILLING THE GST TRAN-1 FORM ONLINE

BASIC INFORMATION TO BE PROVIDED BEFORE STARTING THE GST TRAN-1 FORM PROCEDURE

GST TRAN- 1 must be filed online on the government’s GST portal before the stipulate GST TRAN-1 Due Date. The following process must be adhered to for the proper filing of TRAN-1:

1. After logging in select Services, then select the option of Returns and click on Transition Forms.

2. Bars of Form TRAN-1 will be visible by default.

3. Select the option ‘Yes’ or ‘No’ for ‘Whether all the returns required under relevant earlier laws for the period of six months immediately preceding the appointed date have been furnished’

4. Fill up the necessary details in each tile and press the “Save” button at the bottom. The system will authenticate the entries. By clicking the edit button against that entry the nature of validation will be visible on the top of the screen.

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CARRIED FORWARD TAX CREDIT UNDER THE CURRENT LAW SYSTEM

5. State the details of the amount of tax credit carried forward in the returns filed under relevant earlier laws and admissible as GST credits, by clicking on the tile 5(a), 5(b), 5(c).

a. The Registration Numbers under earlier laws need to be the same as stated by the taxpayer in their registration form.

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b. If the taxpayer has failed to provide any registration number, he may opt the non-core registration amendment facility and thereafter file TRAN 1.

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6. Provide information of capital goods for which credit has not been availed under the relevant earlier law by clicking on the tile 6(a), 6(b).

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7. Declare details of the inputs held in stock in tile 7(a), 7(b), 7(c) and provide the required information to avail the credit of eligible taxes and duties paid under relevant earlier laws.

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8. State details of tax paid under earlier laws and credit admissible on goods and services received within 30 days (60 days in case of extension) of the appointed day in table 7(c).

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9. CENTRAL TAX CREDIT ON ACCOUNT OF CENVAT CREDIT

9. Declare details of the transfer of Central tax credit claimed in Table 5 (a) on account of CENVAT credit carried forward in last return for registered person centralized registration under service tax by clicking on the tile 8. A – In tile 8, you are permitted to enter only GSTIN of receivers that have the same PAN as the taxpayer furnishing details in TRAN 1.

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10. State the details of goods sent to job worker and held in his stock on behalf of the principal by clicking on the tile 9(a) & 9(b).

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11. State details of goods were held in stock by agents on behalf of the principle and its admissible ITC agents by clicking on the tile 10(a), 10(b).

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12. State the details of transition credit availed on the transaction on which tax has been paid by clicking on the tile 11.

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13. State the information of goods sent on approval basis by clicking on the tile 12.

14. Click on Submit button.

15. On successful submission of TRAN -1 the transition credit would be posted to Electronic credit ledger.

16. Click on file button using either DSC or EVC.

17. A message stating successful filing will be displayed and an acknowledgment will be generated on your screen.

18. The ITC posted in electronic credit ledger post successful filing can be used to offset any other subsequent return.

TECHNICAL GLITCHES AND EXTENSION OF GST TRAN-1 Due Date

Already registered taxpayers are filing the GST TRAN -1 form for availing their previous input tax credit  before the coming up of GST. Rules have been made for transferring existing input tax credit available under excise duty or service tax to GST.

According to the transitional provisions of GST, those taxpayers who have registered with reference to GST and permitted to take input tax credit are under an obligation to put forward GST TRAN-1 in GST Common government portal before the expiry of the GST TRAN-1 Due Date. Estimates state that 80 lakhs businesses have migrated to GST. A large number of taxpayers were not able to complete the filing TRAN-1 on the stipulated GST TRAN-1 Due Date. Consequently, a large number of such TRAN-1’s are stuck in the system. GSTN is to identify such taxpayers on the basis of an electronic audit trail.

At Company Vakil you may avail services to get your business registered under The Goods and Services Tax Law. Company Vakil also provides assistance to get you your Goods and Services Identification Number. Taxation Experts of Company Vakil can provide thorough guidance on its applicability and implementation. They also provide guidelines for your business venture’s GST registration.

SUMMARY

The CBIC, in order to enable the taxpayers to complete the filing of GST TRAN-1, and thereby avail the tax credit, which otherwise could not have been availed owing to technical glitches, has extended the GST TRAN -1 Last Date to 30th January 2019.

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