Goods and Service Tax-transition relief –scenario and Guidelines-Issuance of certain instructions – Reg.

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....d Service tax from 1st July, 2017. In this regard GST Act, 2017 has stipulated certain provisions for providing transition relief to the dealers. The provisions pertaining to transition relief are as per section 139, 140, 141 and 142 of the Telangana Goods and Service Tax Act, 2017 and Central Goods Services ax Act, 2017. 1. Section 139 : Migration of existing dealers 2. Section 140 : Transitional arrangements for input tax credit 3. Section 141 : Transitional provisions relating to job work 4. Section 142 : Miscellaneous transitional provisions As per these provisions of the above Acts;- i. The transitional relief will be available to dealers registered under GST and who do not opt for composition scheme ii. The transition relief ha....

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....the returns iii. Each circle to identify top 30 dealers who may be in possession of stocks and likely to claim transition relief iv. The list of the dealers is to be submitted to Commissioner, CT for conducting verification in case the situation arises. v. VAT Dealers can claim only CENVAT credit on stocks, if they are not registered under CENVAT. VAT credit cannot be claimed on stocks except by TOT dealers and dealers opted for composition. These aspects may be verified carefully. Therefore, a non-composition or a non TOT dealer claiming relief for VAT paid on stock may be flagged. vi. The identification of dealers for verification of stock position has to be made out based on risk parameters including the sensitivity of the goods and ....

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....cks as ITC in GST. d) A dealer can avail ITC of Tax / Duty paid on goods received after appointed day. e) A dealer can avail refund of Tax / Duty paid on goods sold before appointed day but returned after appointed day. 4) How can the transitional relief be availed? Ans) The dealer has to file a GST TRAN-1 Form within (90) days from the appointed day through the GSTN Portal, to claim transitional reliefs. Transitional Issues, Reliefs and Conditions to be fulfilled for availing Reliefs S.No. Transitional Issue Conditions to be Fulfilled Remarks 1. Credit Carried Forward (CCF) in the last VAT / CENVAT returns can be claimed as ITC in GST. * Taxable persons should not be under composition in GST. * ITC should be admissible in GS....

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....he appointed day. Stock statement should be provided in TRAN-1. 6. If goods sold earlier to appointed day are returned after appointed day then * Tax will be refunded if purchaser is unregistered. * It will be supply if purchaser is registered. Such goods should not have been sold earlier than (6) months from appointed day and are not returned (6) months after appointed day. ANNEXURE 2 STATUTORY PROVISIONS OF TRANSITIONAL RELIEF UNDER GST The GST Law envisages following scenarios where a taxable person can claim credit of un-availed ITC under the existing law:- * Scenario 1:- Treatment of CCF (Credit Carried Forward). • Section 140(1) of CGST/SGST Act read with Rule 1(1) of transitional rules. • The CCF can be utili....

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....are not liable to pay tax and such persons are having stocks on which duty is paid. o They can claim credit of eligible duty of CENVAT / VAT in GST. o They shall possess an invoice in respect of such inputs. o Such invoices shall not be earlier than 12 months prior to AD. o The details of stock shall be provided in statement 7(a), (b) & (c) of GST TRAN-1 form. o If there is no invoice then credit shall be given as follows which can be utilized within 6 months:- * If CGST / SGST > or = 9% then credit is 60% of GST paid. * If CGST / SGST < 9% then credit is 40% of GST paid. * If IGST > or = 18% then credit is 30% of IGST paid. * If IGST < 18% then credit is 20% of IGST paid. o The details of stock shall be provided in state....

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.... 140(8) &bull; Such credit may be transferred any of the RPs with the same PAN. * Scenario 9:- Treatment of consideration paid against reversal of CENVAT credit. &bull; Section 140(9) &bull; Such duty can be claimed as credit. * Scenario 10:- Treatment of Job Work:- &bull; Section 141 read with Rule 3 &bull; Where inputs are sent for job work prior to AD but returned to RP after AD, then tax not payable under GST if both the RP and the Job Worker declare the details of stock held by such job worker in Statement 9 of GST TRAN-1 form:- o Goods are returned within 6 months from the AD, with an extension of 2 months with the permission of the commissioner. &bull; Where semi-finished goods are sent for job work prior to AD but returne....