Verification of Transitional Credit in Form-I

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....the Law. Accordingly, a guidance note prepared by the Department for the checks to be carried out in relation to the entries provided in various Tables of TRAN-I, is attached as Annexure to this Trade Notice. The list of checks is not exhaustive but is indicative only based on the provisions of Law. All the Trade, Commerce and Industry Associations are requested to bring the contents of this Trade Notice to the notice of their members for information and necessary action. (Issued from file C. No. 1V/16/51/2018-CC (KZ)-GST cell) (Pullela Nageswara Rao) Chief Commissioner Thiruvananthapuram Zone 4 . ============= Document 1 GUIDANCE NOTE ON CGST TRANSITIONAL CREDIT Introduction: Provision for transition of pre-GST era credit of C....

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.... some taxpayers. Accordingly, it has been decided to collect information from this small category of taxpayers, and verify the correctness of credit availed by them by checking the tax payment by their suppliers. Appropriate legal sanction for collection of such information is being examined so that such taxpayers are bound by law to provide the requisite information. Details on this follows in the subsequent paragraphs of the guidance note. 2. Description of Entries in TRAN-1 Table In the Form TRAN 1 there are only six entries which decide all the CGST credit which is posted in the electronic credit ledger. These entries are briefly described below. It is advised that the full text of law be referred for better understanding of th....

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....e case may be. Document 3 4. Column (6) in Entry 7B in Table 7(a) Proviso to Section 140 (3) and Rule 117(4) of CGST Rules This table pertains to credit claim by new taxpayers (e.g. traders) who were not manufacturers or service providers. Deemed credit @ 60% of Central Tax applicable where CGST is 9% or more, and 40% where CGST is less than 9% can be availed. The provision applies where the assessee is not in possession of an invoice or any other documents evidencing payment of duty in respect of inputs only. [In this case the Electronic Credit Ledger gets populated through TRAN-2 and not through TRAN 1]. This table captures transitional credit taken on such inputs or input Column (8) in Table 7(b) 140(5), 140(7) ....

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.... checks is not exhaustive but is indicative only based on provisions of law, the likely error and the inputs received from the field formations on the preliminary verification of the Transitional credit. 4. Checks for Table 5(a): 4.1.1 Check 1: Verify that the credit has been taken against closing balance of CENVAT credit in ER-1/2/3 or ST-3. Credit can be taken only where the last return was filed and credit taken in Table 5(a) should not be more than closing balance of credit in ER-1/2/3 or ST-3 minus the education / secondary education cess / KKC/ SBC. 4.1.2 There are large numbers of taxpayers who have taken Credit only in Table 5(a) and the credit is correct as per the check done at the backend. Such taxpayers should not be di....

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....entationError: expected an indented block after 'if' statement on line 341 Document 7Traceback (most recent call last): File "C:\inetpub\vhosts\taxmanagementindia.com\httpdocs\python_image_text_project\google\direct_extract_text.py", line 19, in from google_doc_api import process_single_document File "C:\inetpub\vhosts\taxmanagementindia.com\httpdocs\python_image_text_project\google\google_doc_api.py", line 345 elif mime_type in ["image/gif"]: IndentationError: expected an indented block after 'if' statement on line 341 Document 8 In relation to taxpayers whose credit growth would be verified as above, they may be advised to confirm from the suppliers of goods and services on whose invoice credit has been taken, that the said supplie....