Filing Transitional Credit Claim (Trans 1 and Trans 2)

One important aspect under GST is the carry forward of credit that was available to a dealer under old regime of VAT and Service tax or Central Excise .The former being known as Input Credit or ITC and CENVAT in latter parlance.Please refer to our earlier post on conditions for claiming carry forward credit published in the month of july. For new visitors the link to the post is as under

Input Tax Credit in GST

Further brief provisions of filing claim for Input tax credit or CENVAT credit under erstwhile laws are as under

Common condition for all cases above that are required to file TRANS form (1 or 2)

The goods pertaining to the input credit have to be sold within 6 month of 01/07/2017

In case of registered dealers under old regime details of forms against which the goods have been procured are to be given

Goods on which credit is to be taken should not be used for taxable goods/services in GST

Still two conditions remain

Job work and Transitional Credit

Job Work

Where goods were sent on job work before 01/07/2017 and brought back after 01/07/2017 then no tax is payable provided the goods are returned within 6 month of appointed day provided that the said period of 6 month may be increased by 2 more month by the commissioner on application made for this effect .Same thing apply for goods returned within 6 month of 01/07/2017 subject to extension for 2 months on goods returned on which duty has been paid then the dealer can claim refund of such duty paid

Filing GST TANS 1 and GST TRANS 2:

For format of both form please see below

Documents required before filing

  • Last filed return copy
  • Copy of invoices on the basis of which INPUT VAT and CENVAT cenvat credit is to be claimed
  • In absence of invoice any other document evidencing payment of duty is required
  • Details of all forms issued and their details under VAT laws
  • Details of capital goods on which un availed credit is planned to be claimed
  • Details of goods sent on job work or goods send on approval basis within 6 month of date of applicability of GST
  • Details of goods lying with agent or held as agent within 6 month of appointed date

If you have with you all the documents detailed above you can file any of the two forms as required applicable to you with ease however in case of any difficulty you can always drop a mail on our site for assistance

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