Date post: | 28-Jan-2018 |
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TRANSITION PROVISONS
UNDER GST
CA LGopal Shah
Bhubaneswar
M: 9437124361
CGST ACT 2017
Section No Description of Provision
139 Migration of Existing Tax
payers
140 Transitional Arrangements for
Input Credits
141 Transitional Provision
Related to Job Work
142 Miscellaneous Transitional
Provisions.
Section 139 read with rule 17 of
registration rules. Every person registered under any existing law
(i.e. Excise, S Tax, VAT etc) and having validPAN shall be given provisional certificate underthis act in FORM GST REG-25 (once User IDvalidating Email and Mobile number is created onGST portal provisional registration shall begranted)
After which form REG-26 will be filled within 3moths on which a final RC shall be issued inREG-06 (those who have migrated have alreadyfiled Reg-26, no need to file again).
As per registration rules: every registeredperson have to display GSTIN at Principleand every additional place of business.
Section 140(1) – Carry forward of
existing credits.
All the credits in return
for the period ending
Immediately preceding
the appointed day
Subject to 4
Conditions
Conditions
Should have not opted for composition Scheme In GST
Should be eligible credit under GST law ( Eligible credits
have been stated in section 17)
All returns pertaining to 6 months prior to appointed date
should have been filed.
Should not be related manufacture of exempted goods
which have been cleared.
Section 140(2) – Carry forward of credits
in relation to capital goods.
Unavailed portion of CENVAT credit in
relation to capital goods not appearing
in the return shall be allowed to carry
forward in GST provided it is eligible
credit under GST.
Section 140(3) Carry forward of credits
by unregistered dealer etc.
All the eligible credits in respect of inputs in stock,
input in work in progress and input in Finished held
immediately before the appointed day shall be
allowed to be C/F subject to:-
Such goods shall be used for making taxable supplies.
Such Person shall be eligible for input tax credits.
Such person is in possession of invoice/ other prescribed
document evidencing payment of duty.
Invoice should not be older than 12 Months.
Service provider is not eligible to any abatement under this
ACT.
Section 140(4) carry forward of credit by
manufacturer of exempted goods.
Manufacturer of exempted goods or
provider of exempted services which
are eligible to tax under GST shall
take credit of:-
◦ All the eligible duties in respect of inputs
held in stock, inputs held in work in
progress and inputs held in finished
goods as on the appointed day.
Section 140(5) Credits for inputs and
inputs services in transit.
All the inputs and inputs services received for
which taxes were paid under the previous law but
invoice received after the appointed day.
Credits in respect of such shall be allowed if the
invoice has been recorded within 30 days from the
appointed in books. (This period may be extended
by commissioner)
A statement in TRAN -1 is required to be filled.
Section 140(6) Credits by Manufacturer
paying fixed rate of duty All the eligible credits in respect of inputs in stock, input
in work in progress and input in Finished held immediately before the appointed day shall be allowed to be C/F subject to:-
Such inputs or goods are used or intended to be used for supply of taxable supply under GST.
Such person has not opted for composition scheme (GST)
Such registered person is eligible for ITC under GST
Invoices evidencing payment of duty are available.
Invoices shall not be older than 12 months.
Section 140(7) Input credits of Input
service distributor
Input tax credit on account of services
received before the appointed day by
ISD shall be eligible for distribution by
ISD even if invoices are received after
appointed day.
140(8) Credits of person having
centralized registration.
A person having centralised
registration may distribute credits
allowed to be carry forward between
registered persons having same
PAN(i.e. to branches in each state)
140(9) Credits of Input service reversed
earlier
Cenvat credit which were reversed
due to non payment within three
months shall be reclaimed under this
act subject to the condition that
payment has been made within 3
months of the appointed day.
Section 141(1) input sent to job worker
before appointed day
Inputs sent to job worker before the appointed day
and is received back from job worker after the
appointed day, NO GST shall be payable if
received within 6 months from appointed day which
may further be extended to 2 months by
commissioner.
If goods are not received back in 6 + 2 months
CCR claimed on such inputs in previous shall also
be recovered.
Section 141(2) Semi finished goods sent
to job worker before appointed day
Semi finished goods sent to job worker before the appointed day and is received back from job worker after the appointed day, NO GST shall be payable if received within 6 months from appointed day which may further be extended to 2 months by commissioner.
If goods are not received back in 6 + 2 months CCR claimed on inputs contained in such semi finished goods in previous shall also be recovered.
Goods may cleared from the job worker premises to any other registered person on payment of GST or may be exported without payment of GST.
Section 141(3) Finished goods sent to
job worker before appointed day
Finished goods sent to job worker before the appointed day and is received back from job worker after the appointed day, NO GST shall be payable if received within 6 months from appointed day which may further be extended to 2 months by commissioner.
If goods are not received back in 6 + 2 months CCR claimed on inputs contained in such semi finished goods in previous shall also be recovered.
Goods may cleared from the job worker premises to any other registered person on payment of GST or may be exported without payment of GST.
Condition for Section 141(1),
141(2) & 141(3) Both Job worker and principal
manufacture have to declare the stock
held by job worker on the appointed
day in such form and time as may be
prescribed.
Sec 142(1) Goods returned by Sold prior
to appointed day
Goods sold 6 months prior to the appointed date were returned within 6 months of the appointed day by person other than registered person, registered person (Seller ) shall be eligible for refund of duty.
If goods are returned by registered person, such return shall be treated as supply under GST.
Section 142(2) Revision in price for
supplies made earlier. Where there is any upward revision in price of supplies
made prior to the appointed date, registered person shall issue supplementary invoice within 30 days of such revision, such supplementary invoice shall be deemed to be invoice issued for supply under this act.
Where there is any downward revision in price of supplies made prior to the appointed date, registered person may issue credit note within 30 days of such revision, such credit shall be deemed to be Credit note issued for supply under this act.
On the basis of such credit note registered person shall be allowed to reduce its output tax liability provided recipient of credit note has reduced its credit
Section 142(3)- 142(5) Refund claim for
previous CCR, Duty etc
Any refund claim filed after the appointed day shall
be disposed of in accordance with the provision of
existing law and any amount accruing shall be paid
in cash.
If any claim is rejected the amount so rejected shall
lapse.
No claim for CCR carry forward under this act shall
be available.
Section 142(6) -142(9) - Proceeding
of Appeal review or Reference
Any appeal proceeding review or reference relating
to CENVAT credit or output tax liability initiated
before on or after the appointed day shall be
disposed of in accordance with the provisions of
existing law.
Sec 142(10)
Goods Supplied on or after the
appointed in pursuant to contract
entered before the appointed day shall
be chargeable to GST.
142(12) Goods sent on Approval
Basis Goods sent on approval basis
received back with in 6 months shall
not be chargeable to tax
142(13) TDS on supply of
Goods Where any TDS was required to be
deducted under any law for supply
made before the appointed day, no
TDS shall be deducted if payment is
made on or after the appointed Day.