TMI BlogGoods and Service Tax-transition relief –scenario and Guidelines-Issuance of certain instructions – Reg.X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 : Transitional arrangements for input tax credit 3. Section 141 : Transitional provisions relating to job work 4. Section 142 : Miscellaneous transitional provisions As per these provisions of the above Acts;- i. The transitional relief will be available to dealers registered under GST ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 to be submitted to Commissioner, CT for conducting verification in case the situation arises. v. VAT Dealers can claim only CENVAT credit on stocks, if they are not registered under CENVAT. VAT credit cannot be claimed on stocks except by TOT dealers and dealers opted for composition. These aspects may be verified carefully. Therefore, a non-composition or a non TOT dealer claiming relief for VAT paid on stock may be flagged. vi. The identification of dealers for verification of st ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d forward (CCF) in GST. b) A dealer can avail Tax / Duty paid on capital goods as ITC in GST. c) A dealer can avail Tax / Duty paid on stocks as ITC in GST. d) A dealer can avail ITC of Tax / Duty paid on goods received after appointed day. e) A dealer can avail refund of Tax / Duty paid on goods sold before appointed day but returned after appointed day. 4) How can the transitional relief be availed? Ans) The dealer has to file a GST TRAN-1 Form within (90) days from the appointed day through the GSTN Portal, to claim transitional reliefs. Transitional Issues, Reliefs and Conditions to be fulfilled for availing Reliefs S.No. Transitional Issue Conditions to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 statement in respect of this credit should be furnished. 5. A TOT dealer or a dealer under composition can claim Tax / Duty paid on unsold stocks as ITC in GST. The invoice evidencing payment of Tax and relatable to stock shall not be earlier than (12) months from the appointed day. Stock statement should be provided in TRAN-1. 6. If goods sold earlier to appointed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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 Capital Goods. Section 140(2) of CGST Act read with Rule 1(2) of Transition Rules. For CGST un-availed CENVAT credit on capital goods can be claimed by declaring the same in Statement 6 of GST TRAN-1 form. Scenario 3:- Treatment of tax paid on the stocks in certain cases. Section 140(2) of CGST Act read with Rule 1(2b) and Rule 1(4). In case of persons who are not registered under CENVAT/VAT or registered CENVAT/VAT persons are not liable to pay tax and s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6:- Treatment of tax paid on the stocks in case of RPs paying tax at fixed rates / amount under the existing law. Section 140(6) They can claim credit of eligible duty of CENVAT / VAT in GST. They shall possess an invoice in respect of such inputs. Such invoices shall not be earlier than 12 months prior to AD. The details of stock shall be provided in statement 7(a), (b) (c) of GST TRAN-1 form. Scenario 7:- Treatment of ITC on services received prior to AD by a input service distributor. Section 140(7) The ISD can distribute such ITC if invoices are received after the AD. Scenario 8:- Treatment of CCF of a RP with centralized registration. Section 140(8) Such credit may be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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