GST – States – CCT’s Ref No. A(1)/72/2017 – Dated:- 24-6-2017 – Office of the Commissioner of Commercial Taxes Telangana State :: Hyderabad CCT s Ref No. A(1)/72/2017, Dt.24-06-2017 Sri V. Anil Kumar, I.A.S., Commissioner (CT) Circular GST-Transitional Relief – Certain Guidelines Sub:- Goods and Service Tax-transition relief -scenario and Guidelines-Issuance of certain instructions – Reg. Ref: – Chapter 20 of the State Goods and Service tax Act, 2017. *** Attention is invited to the subject and the reference cited. It is to inform that Government of India has already announced the introduction of Goods and 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 :
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ent like tax invoice or excise challan they are eligible to claim ITC as per the document, if purchased within 12 months prior to appointed day. If they do not possess taxpaying document, then credit is available at the rate of 60% in case the goods are to be taxed at 18% on payment of GST and 40% for other goods. The various scenario in claiming of transition relief are enclosed in Annexure 2. The following are the action to be taken to ensure dealers avail the transition relief with ease and at the same time no excess claim is made;- i. The transition provisions to be explained to the dealer groups ii. The computer wing has developed the software to capture the stock position as on 31st March, 2017 and as on 31st May,2017 along with the monthly returns. The dealers are to be prevailed upon to furnish the information along with 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
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adopting first-in-first-out accounting method. • All the cases where the rate of Tax on goods was higher in the existing Law (CENVAT + VAT) but is taxed at a reduced rate under GST Law are prone to stock manipulation. Therefore, all such cases may be flagged. All the Deputy Commissioners are to take immediate action in this regard and report compliance. Sd/- V. Anil Kumar Commissioner (CT) To All the Deputy Commissioners (CT) in the State. Copy to all the Senior Officers in O/o CCT. Annexure 1 Transitional Provisions under GST Law 1) What are transitional provisions? Ans) These are special provisions made in the GST Act to enable existing dealers under VAT / CENVAT Act to smoothly migrate to GST. 2) Who can avail reliefs under transitional provisions? Ans) All the existing dealers can avail reliefs under transitional provisions. 3) What are the various reliefs? Ans) a) A dealer can avail ITC of the credit carried forward (CCF) in GST. b) A dealer can avail Tax / Duty paid on capi
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t on capital goods which is not part of CCF can be availed as ITC in GST Such credit should be admissible under CENVAT and GST Law. 3. Duty or Tax paid on unsold stock can be availed as ITC in GST in the case of Presently un-registered person. Person using Taxable input for exempt output. (a) Such stock should be covered by invoices evidencing payment of Tax / Duty and should not be earlier than (12) months from the appointed day. (b) If invoice is not there, then stock should be covered by other purchase documents. Credit will be allowed after GST on supply of such goods is made. Stock statement should be provided in TRAN-1. In case of (b), credit will be allowed @60% if GST rate is equal to 18% and @40% if GST rate is less than 18%. 4. Tax / Duty paid on goods earlier to the appointed day can be claimed as ITC in GST if such goods are received after appointed day. The details of such invoice or documents should be recorded in the books within (30) days from the appointed day and the
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s credit in the GST by declaring it in GST TRAN-1 form within 90 days from Appointed Day (AD). • The Registered Person (RP) claiming the CCF:- o Shall not be under composition in GST. o Such credit is admissible under GST. o Such RP should have filed returns for the past 6 months from AD. • CCF under CENVAT Act can be claimed by uploading details in Column 5(a) of the GST TRAN -1 form if:- o The credit is not related to goods manufactured and cleared under any exemption notification. • CCF under VAT Act can be claimed in the following manner:- o If not related to CST transactions, CCF can be claimed straight away. o If it is due to transactions made under CST Act, then:- If the transactions are between 01-04-2015 to 30-06-2017. The statutory forms pertaining to the transactions made in the above period are available with the dealer. The balance tax on inter-state turnover to the extent of statutory forms not available is reduced from CCF. Scenario 2:- Treatment of ITC on
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T < 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 statement 7(a),(b) & (c) of GST TRAN-1 form and a monthly statement in GST TRAN-2 for 6 months. Scenario 4:- Treatment of credit pertaining to taxable and exempt goods / services under the existing law but taxable under GST and dealt by a single RP:- • Section 140(4) • The portion of CCF shall be treated as detailed in Scenario 1 above. • The Duty / VAT paid on stocks shall be treated as Scenario 3 above. Scenario 5:- Treatment of tax paid under existing law on the goods received after AD. • Section 140(5) • The RP shall be eligible for credit of such tax under GST if:- o The invoice details are recorded in the books of account within 30 days from AD. o Statement in respect of that credit shall be furnished by RP. Scenario 6:- Treatment of tax paid on the stocks in case
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r 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. • Where semi-finished goods are sent for job work prior to AD but returned to RP after AD, then tax not payable under GST if:- o Goods are returned within 6 months from the AD, with an extension of 2 months with the permission of the commissioner. • Where finished goods are sent to other / others premises for undergoing testing or other process then:- o Goods are returned within 6 months from the AD, with an extension of 2 months with the permission of the commissioner. Scenario 11:- Goods sold prior to AD but returned after AD:- • Section 142(1) • Treatment of goods sold not earlier than 6 months before AD but returned within 6 months from AD:-
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