TaxTMI 
TaxTMI 
Verification of TRAN-1 credits.
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....ines on issues such as allowing credit, as per revised return, verification of CST declarations, verification of MVAT credit etc...... Background Earlier, guidelines have been given to the departmental officials for verification of TRAN-1 credit by Internal Circulars referred above. In most of the cases, verification must have been done. However, some queries have been received from the departmental officials and tax payers and hence further guidelines are being given in this circular. For the sake of consistency in the terminology, the term "dealer" is used for tax-payers. 2. Credit as per revised return under MVAT: Earlier by Internal Circular No. 1A of 2018 and 23A of 2018, instructions had been given to allow credit in TRAN-....
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....ing MVAT assessment proceedings of the said dealer. In case, such dealer has not applied in e-501 for MVAT refund, then the dealer may make a request in writing to the nodal authority. The nodal authority, after verification of such request, shall send it to the Zonal Selection Committee through proper channel. c) files revised MVAT return and mentions lesser amount in the field "excess credit carried forward to subsequent tax period". Clarification: In this situation, the credit may be allowed to be claimed in TRAN- 1, as per the revised return. ii. Situation 2: A dealer has carried forward credit in revised MVAT return for the period ending on 30th June 2017 but such amount is more than amount of credit carried ....
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.... MVAT refund of excess credit as well as to claim it in TRAN-1 in respect of the same credit and hence the MVAT refund application shall not be considered for the grant of refund. In any case the nodal authorities shall ensure avoidance of such duplicate claims. 3. Verification of CST declarations: Verification of CST declarations is necessary to determine the credit eligible to be taken u/s 140(1) and u/s 140(4)(a) of the MGST Act. A. Periods for which verification to be done: A dealer, who has carried forward credit in his MVAT return for the period ending on 30th June 20 J 7 in his TRAN-1, is expected to furnish details of CST declarations received for the periods starting from 1st April 2015 to 30th June 2017. Nodal authorit....
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....in TRAN-1 u/ s 140(1), supported by valid CST declarations, should only be allowed. However, in any case, as provided in the Proviso to sec. 140(1), such dealers may ask for MVAT refund, if otherwise eligible. In case, such a dealer has not filed an application for refund in e-501, then he may make a request in writing for taking up his case for MVAT/ CST assessment to grant MVAT refund. The nodal authority, after verification of such request shall send the application to the Zonal Selection Committee through the respective Jt. Commissioner. 4. Verification of MVAT credits: A. Mismatch of VAT credit: Earlier, by Internal Circular No 23A of 2018, the nodal authorities had been asked to verify MVAT setoff on the basis of the EIU d....
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....sary to communicate details of any tax and interest, as ascertained by the nodal authority, in Part A of the newly introduced Form DRC-01A before issuing show cause notice and summary in DRC-01. Such communication in may be made physically to the dealers till this functional utilily becomes available on the GSTN BO System. B. Intimation in DRC-03: Dealers must have been informing about the payments made by them in Form DRC-03 [rule 142(2)]. Now, by 'virtue or the amendment to rule 142 [Notification No. 49 dated 9th Oct. 2019], where a dealer, on whom DRC-01A has been served, makes partial payment of the amount communicated to him or desires to file any submissions against the liability proposed in then he may make such submissi....