TRANSITIONAL PROVISIONS

[Asked by Guest]

We are situated in Haryana; we were traders and registered under the existing law (Service Tax, VAT) and having import export number. We also having Branches in few states in the pre –GST regime they were also registered in VAT, & Service tax.

Now, we have registered in GST and having closing stock as on 30.06.2017. In this stock some goods imported, purchased from manufacture and some stock transfer received from our Branched against Form F.

We want to take credit on closing stock as on 30.06.2017. We have purchased Invoices showing Excise duty and Bill of Entry also. We have Branch’s invoices but not showing Excise amount thereon.

My query is how to calculate excise duty amount on laying goods which was received from branches.

Please elaborate following rule and Sections in layman language.

1. Rule 117 (4) (a)CGST rules 2017,
2. who will file TRAN-2?
3. Sub section (3) of Section 140 of CGST Act

Thanks in advance

AI Summary

Input tax credit claims via TRAN-1 or TRAN-2 require invoice evidence or receive deemed credit and are subject to scrutiny.
Input tax credit for pre-GST closing stock must be claimed in transitional statements: TRAN-1 for previously registered taxpayers with invoices evidencing excise duty and TRAN-2 for newly registered persons. Branch stock transfers manufactured and dispatched under stock-transfer invoices are treated as duty-paid and may qualify for full credit if supported by duty-paid documents. Where invoices are absent or goods are exempted but contain duty-paid inputs, a deemed credit mechanism (commonly 40% or 60%) applies. All TRAN-1 and TRAN-2 claims are subject to departmental scrutiny and limitations where GST rates on final products differ from earlier duty rates.