TRANSITIONAL PROVISIONS IN GST
GST
Dated:- 11-8-2017
TRANSITIONAL PROVISIONS IN GST
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Document 1
TRANSITIONAL
PROVISIONS IN GST
SECTIONS IN MODEL GST
➤ MIGRATION OF EXISTING TAX PAYERS [s. 166]
➤ CENVAT/VAT CREDIT c/f in a return to be allowed as ITC [s.167]
•
➤ Un-availed CENVAT/VAT Credit on capital goods, not c/f in a return [s.168]
•
INPUT CREDIT ON STOCK TO BE ALLOWED IN CERTAIN SITUATIONS [ s.169]
Not liable for registration earlier but liable for registration now
Manufacture of exempted goods and provision of exempt services earlier but
taxable now
Works contract service availing the benefit of notification No. 26/2012
First stage dealer or second stage dealer or registered importer
SECTIONS IN MODEL GST
➤ CENVAT Credit of inputs held in stock related to exempted goods or services of a
manufacturer/service provider engaged in both non-exempted and exempted
[s.170] [CGST]
➤ Credit of eligible duties
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TDS] [s.186 – 197]
MIGRATION OF EXISTING TAX PAYERS TO GST
Issue of
Provisional
Certificate with
validity of 6
months
Taxable Person
furnishes required
information within 6
months
FINAL REGISTRATION
CERTIFICATE IS
GRANTED
Taxable Person does
not furnish required
information within 6
Provisional Certificate
may be Cancelled
months
Provisional Certificate is cancelled upon
dealer's application
[Not Liable
under GST]
Provisional Certificate is DEEMED
NOT TO HAVE BEEN ISSUED
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CENVAT/VAT CREDIT [s.167-172]
C/F IN THE LAST RETURN
UNAVAILED CREDIT ON
CAPITAL GOODS
PRE GST
CENVAT/
VAT CREDIT
MANUFACTURED GOODS EXEMPT EARLIER –
TAXABLE NOW
ENJOYED COMPOSITION PRE GST, NOW
UNDER NORMAL SCHEME
WAS UNDER NORMAL SCHEME PRE GST,
NOW OPTS FOR COMPOSITION
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CENVAT/VAT CREDIT [s.167 – 168]
CENVAT/VAT CREDIT
CARRIED FORWARD
UNAVAILED CENVAT/VAT
CREDIT ON CAPITAL
GOODS
NOT CARRIED FORWARD
CREDIT WILL BE
AVAILABLE IN GST
Subject to the following Conditi
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of such credit by way of reduced prices to the
recipient
✓ The amount of credit shall be calculated in such manner as may be
prescribed
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GOODS RETURN [s.173-174]
When,
➤ Goods were removed/sold within 6 months prior to the appointed day &
➤ Returned within 6 months from the appointed day
➤ Proper Officer can satisfactorily identify the goods, then for
Goods which were Earlier
Exempted but Taxable
under GST
Goods on which Duty/Tax
paid under the earlier law
No Tax is payable by the
person returning the
Goods
If the goods are returned
by a taxable person such
return is a deemed supply
Taxable Person receiving
such goods within 6
months entitled to refund
of duty/tax paid earlier at
the time of removal/sale
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JOB WORK [s.175 – 177]
(Inputs/Semi-finished/Finished goods sent for job – work)
Conditions:
Removal/Dispatch to the job worker prior to the appointed day&
➤ Returned within six months from the appointed day/extended period
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law
Liability of Output Duty/
Tax as per Earlier Law
Refund/
Recovery
Assessment/Adjudication
Proceeding as per Earlier
Laws(any tax/penalty/interest)
Revision of return as per
Earlier Law
PENDING REFUND CLAIMS FILED BEFORE THE APPOINTED DAY to be
disposed of as per the provisions of earlier law
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REFUND/RECOVERY [s.179-185]
REFUND –
Pending or accruing from
appeal, etc
To be generally paid in Cash (CGST) & as
per the provisions of earlier law (SGST)
RECOVERY resulting from
proceedings under the
earlier law
Rejected Claim of Refund to LAPSE
To be Recovered as an arrear of GST
Amount refundable/recoverable shall not be
admissible as ITC under GST
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1
LONG TERM
CONSTRUCTION /
WORKS CONTRACT
s. 186
MISCELLANEOUS
2
# PROGRESSIVE
/PERIODIC SUPPLY
s. 187
1
Supply to be taxed
under GST Law
• Goods and/or services supplied after the appointed date
• Contract entered prior to the appointed date
2
3
No Tax to be paid
under GST
Goods and
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y to it
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MISCELLANEOUS
TAX PAID ON GOODS/ CAPITAL GOODS LYING WITH AGENTS TO BE
ALLOWED AS CREDIT [s.192 – 193]
Goods belonging to Principal lying with the agent on the appointed day
Conditions:
➤ Agent is registered under GST
➤ Principal & Agent both declare the details of stock of Goods lying with the
agent immediately preceding the appointed day
➤ Invoices were issued not earlier than 12 months prior to the appointed
day
Principal has either reversed or not availed of the ITC in respect of such
goods
Agent entitled to take credit of tax paid on such goods
this provision is specific to SGST Law
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MISCELLANEOUS
TREATMENT OF BRANCH TRANSFERS [S. 194]
Branch Transfers
Input Tax Credit reversed prior
to the appointed day not
admissible as Input Tax Credit
under the GST Law
NOTWITHSTANDING ANYTHING TO THE CONTRARY
CONTAINED IN THE GST ACT
this provision is specific to SGST Law
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MISCELLANEOUS
GOODS SENT ON APPROVAL BASIS REJECTED/RETURNE
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