Rule 1 - Draft Rule for issue of Credit Transfer Document to be inserted in the CENVAT Credit Rules, 2004 for transfer of cenvat credit paid on specified goods available with a trader as on appointed date

Credit Transfer Document enables transfer of pre GST excise credit to GST registered dealers subject to documentation and reporting.

A Credit Transfer Document allows a manufacturer to transfer evidence of pre CGST excise duty paid on specified, identifiable goods to a GST registered dealer so the dealer may claim credit, subject to conditions: branded and identifiable goods above a value threshold, verifiable clearance and duty records, serialised CTDs containing prescribed particulars, issuance within thirty days of the appointed date with corresponding invoices, retention of invoice chains by dealers, quotation of CTD number on subsequent supply invoices, prohibition of prior invoiced goods, and reporting and record maintenance obligations (TRANS 3, TRANS 3A/3B). Manufacturers face joint and several liability for duplicate credit claims.