Transitional credit of input and input service under TRAN-1

[Yatin Bhopi]

Dear Expert,

We have input and input services received (enter in the books) prior to 1st July 2017 but for various reasons(eg. non receipt of documents, pending inspections, by human error) we have not availed CENVAT credit in ER-1.

1. Now while entering the invoices in TRAN-1 (7b) when we put 'Date on which entered in recipients books of account' prior to 1st July 2017 (say 30th June 2017) credit is denied and not accepted on portal saying that date should not be prior to 1st July 2017.

2. Where we have paid service tax under reverse charge on 5th Sep 2017 (payment made to supplier in the month of Aug 2017) like security service, legal service, GTA etc.

My query is,

1. Is that means we are not able to take input tax credit under TRAN-1?

2. Whether is there any procedure to claim refund.

Please guide

[Himansu Sekhar]

For the regd assessees the credit has to be declared in the er1. As per the provisions under sec. 140, it seems credit is not available. Also there is provision to claim refund also.

[KASTURI SETHI]

Closing balance of cenvat credit shown in ER-1 return is basis for carrying forward/availing ITC through Trans-1. Agree with Sh.Himansu Sekhar Ji.

[Yatin Bhopi]

Can we claim refund?

[Himansu Sekhar]

No, refund is allowable. Tran 1 figure should correspond with er1 closing balance.

AI Summary

Transitional input tax credit must match closing return balance; portal blocks entries dated before the effective date. Transitional credit under TRAN 1 must mirror the CENVAT/ER 1 closing balance; the TRAN 1 portal disallows invoice entry dates preceding the GST effective date, so transitional declarations cannot use pre effective book dates. Advisory views differ on whether statutory transitional credit is available or refundable, but practical guidance is to align TRAN 1 figures strictly with ER 1 closing balances and address any disputed relief under the transitional provisions.