Transitional provisions under GST

1. CA Mohit Singhal
B.Com, CA, DISA(ICAI)
Faculty of GST for ICAI
Transitional Provisions under GST

2. MIGRATION OF EXISTING TAXPAYERS
Appointed Day
Person registered under any of the
existing laws and having a valid
Permanent Account Number.
Shall be issued an provisional
Certificate Of Registration.
Unless replaced by final certificate
liable to be cancelled if not
complied
Mr X
Registered Person
Mr X
Registered Person
© CA Mohit Singhal

3. If application found correct and complete, Certificate of
registration in Form REG-06 issued by PO and available on
common portal.
If information/particular not furnish or found
incomplete/incorrect, PO shall cancel the provisional
registration and issue order in Form GST REG-26
Show cause notice in Form GST REG-27 is served before cancellation order with a reasonable opportunity of being heard.
If no cause exists, then this notice can be vacated by issuing Form GST REG-19.
Every person (other than TDS Deductor & ISD) registered under earlier law and having PAN shall enroll on common portal
by validating email ID & Mobile No.
After enrolment, person shall be granted provisional registration in Form GST REG-25 incorporating GSTIN therein be
available on common portal.
Person having multiple registrations with same PAN shall be granted only one provisional registration number.
Person having centralization registration under service tax shall be granted only one provisional registration in which they are
registered.
After grant of provisional registration, every person requires to submit an application electronically in Form GST REG-24
within 3 months or extended period with required information and documents.
Within 30 days, a person may at his option file application in Form GST REG-28 for cancellation of the registration granted
provisionally to him if person registered earlier law not liable to be register under this act, and PO after enquiry cancel the same.
Migration of persons Registered under Earlier Law into GST
© CA Mohit Singhal

4. Appointed Day-Cenvat Credit C/f in Return
Mr X
Registered Person other than option
Section 10
have
amount of CENVAT credit carried
forward in the return immediately
preceding the
appointed day
TRANSITIONAL ARRANGEMENTS FOR INPUT TAX CREDIT-1
Entitled to take, in his Electronic
Credit Ledger subjected to
following conditions:-
1. Where the said amount of credit is not
admissible as input tax credit under this
Act; or
2. Where he has not furnished all the
returns required under the existing law
for the period of six months immediately
preceding the appointed date; or
3. Where the said amount of credit relates
to goods manufactured and cleared
under such exemption notifications as
are notified by the Government
© CA Mohit Singhal

5. Appointed Day-Unavailed Cenvat Credit
Mr X
Registered Person other than option
Section 10
have
amount of UNAVAILED CENVAT CREDIT in
respect of capital goods not carried
forward in the return immediately
preceding the
appointed day
TRANSITIONAL ARRANGEMENTS FOR INPUT TAX CREDIT-2
Entitled to take, in his Electronic
Credit Ledger
Not allowed to take credit unless the said
credit was admissible as CENVAT credit
under the existing law and is also admissible
as input
tax credit under this Act.
“UNAVAILED CENVAT CREDIT”:-
Aggregate amount of CENVAT credit on CG
Minus
Amount of CENVAT credit already availed
© CA Mohit Singhal

6. Appointed Day-Specific Cases
A registered person
1. Who was not liable to be
registered under the existing law,
or
2. Who was engaged in the
manufacture of exempted goods or
provision of exempted services, or
3. Who was providing works contract
service and was availing of the
benefit of notification No.
26/2012—Service Tax, dated the
20th June, 2012 or
4. A first stage dealer or
5. A second stage dealer or
6. A registered importer or
7. A depot of a manufacturer
TRANSITIONAL ARRANGEMENTS FOR INPUT TAX CREDIT-3
Entitled to take, in his Electronic
Credit Ledger
credit of eligible duties in respect of inputs
held in stock and inputs contained in semi-
finished or finished goods held in stock on
the appointed day subject to the following
conditions:-
 Such inputs or goods are used or intended to
be used for making taxable supplies under this
Act;
 The said registered person is eligible for input
tax credit on such inputs under this Act;
 The said registered person is in possession of
invoice or other prescribed documents
evidencing payment of duty under the existing
law in respect of such inputs;
 Such invoices or other prescribed documents
were issued not earlier than twelve months
immediately preceding the appointed day; and
 The supplier of services is not eligible for any
abatement under this Act:
© CA Mohit Singhal

7. TRANSITIONAL ARRANGEMENTS FOR INPUT TAX CREDIT-3
“Eligible Duties” means
 The additional duty of excise leviable under section 3 of the Additional Duties of Excise (Goods of
Special Importance) Act, 1957;
 The additional duty leviable under sub-section (1) of section 3 of the Customs Tariff Act, 1975;
 The additional duty leviable under sub-section (5) of section 3 of the Customs Tariff Act, 1975;
 The additional duty of excise leviable under section 3 of the Additional Duties of Excise (Textile and
Textile Articles) Act, 1978;
 The duty of excise specified in the First Schedule to the Central Excise Tariff Act, 1985;
 The duty of excise specified in the Second Schedule to the Central Excise Tariff Act, 1985; and
 The National Calamity Contingent Duty leviable under section 136 of the Finance Act, 2001,
Where a registered person, other than a manufacturer or a supplier of services, is
not in possession of an invoice or any other documents evidencing payment of
duty in respect of inputs then, such registered person shall subjected to condition
& shall pass on the benefit of such credit by way of reduced prices to the
recipient,
be allowed to take credit at the rate of 40% of the central tax applicable on
supply of such goods after the appointed date and shall be credited after the
central tax payable on such supply has been paid.
© CA Mohit Singhal

8. Appointed Day-Taxable and Exempted
Engaged in the manufacture of taxable as
well as exempted goods under the Central
Excise Act, 1944 or provision of taxable as
well as exempted services under Chapter
V of the Finance Act, 1994
which are liable to tax under this Act
Mr X
Registered Person
Entitled to take, in his Electronic
Credit Ledger
The amount of CENVAT credit carried
forward in a return furnished under the
existing law by him in accordance with
the provisions of sub-section (1); and
The amount of CENVAT credit of eligible
duties in respect of inputs held in stock
and inputs contained in semi-finished or
finished goods held in stock on the
appointed day, relating to such
exempted goods or services, in
accordance with the provisions of sub-
section-3
TRANSITIONAL ARRANGEMENTS FOR INPUT TAX CREDIT-4
© CA Mohit Singhal

9. Appointed Day-Goods in Transit
Credit of eligible duties and taxes in
respect of inputs or input services
received on or after the appointed day
but the duty or tax in respect of which
has been paid by the supplier under
the existing law
Entitled to take, in his Electronic
Credit Ledger
subjected to condition that
 The invoice or any other duty or tax paying
document of the same was recorded in the
books of account of such person within a
period of 30 Days or extended period of 30
days with commissioner approval from the
appointed day.
 Furnish a statement in prescribed manner.
TRANSITIONAL ARRANGEMENTS FOR INPUT TAX CREDIT-5
© CA Mohit Singhal

10. Appointed Day-Composition to Normal Scheme
Paying tax at a fixed rate or paying a
fixed amount in lieu of the tax payable
under the existing law
Entitled to take, in his Electronic
Credit Ledger
credit of eligible duties in respect of
inputs held in stock and inputs
contained in semi-finished or finished
goods held in stock on the appointed
day subject to the following conditions:
1. Such inputs or goods are used or intended to
be used for making taxable supplies under this
Act;
2. The said registered person is not paying tax
under section 10;
3. The said registered person is eligible for input
tax credit on such inputs under this Act;
4. The said registered person is in possession of
invoice or other prescribed documents
evidencing payment of duty under the existing
law in respect of inputs; and
5. Such invoices or other prescribed documents
were issued not earlier than twelve months
immediately preceding the appointed day.
TRANSITIONAL ARRANGEMENTS FOR INPUT TAX CREDIT-6
© CA Mohit Singhal

11. Appointed Day-Service ISD received service invoice after AD
In case of Input Service Distributor,
For input tax credit
on account of any services received
prior to the appointed day
Eligible for distribution as credit under
this Act even if the invoices relating to
such services are received on or after
the appointed day.
TRANSITIONAL ARRANGEMENTS FOR INPUT TAX CREDIT-7
Appointed Day-Cenvat reversed due to non payment
CENVAT credit availed for the input
services provided under the existing law
has been reversed due to non-payment
of the consideration within a period of
three months,
Such credit can be reclaimed subject to the
condition that the registered person has
made the payment of the consideration for
that supply of services within a period of
three months from the appointed day
© CA Mohit Singhal

12. Appointed Day-Centralisation Registration
Centralisation Registration
Entitled to take, in his Electronic
Credit Ledger
credit of the amount of CENVAT credit
carried forward in a return, furnished
under the existing law by him, in respect
of the period ending with the day
immediately preceding the appointed
day.
1. Original or Revised Return-Within 3 months
from AD-Where credit has been reduced from
the claimed earlier.
2. Shall not allowed to take credit unless the said
amount is admissible as input tax credit under
this Act.
3. Such credit may be transferred to any of the
registered persons having the same
Permanent Account Number for which the
centralised registration was obtained under
the existing law.
TRANSITIONAL ARRANGEMENTS FOR INPUT TAX CREDIT-8
© CA Mohit Singhal

13. Appointed Day- Inputs
Inputs received at a place of business
removed as such or removed after
being partially processed to a job
worker for further processing, testing,
repair, reconditioning or any other
purpose under existing law.
No tax shall be payable if such inputs
are returned to the said place within six
months(or further period of 2 months
as extended by commissioner) from the
appointed day after completion of the
job work or otherwise.
if such inputs are not returned within
the period specified input tax credit
shall be liable to be recovered in
accordance with the provisions of
Section 142(8)(a).
TRANSITIONAL PROVISIONS RELATING TO JOB WORK
On AD-Job Worker & Manufacture require to declare the details of stock held by job work
© CA Mohit Singhal

14. Appointed Day- Semi-Finished Goods
Semi-Finished Goods from the place
of business to any other premises for
carrying out certain manufacturing
processes in accordance with the
provisions of existing law
No tax shall be payable if such goods
are returned to the said place within six
months(or further period of 2 months
as extended by commissioner) from the
appointed day after undergoing
manufacturing processes or otherwise.
If such goods are not returned within the
period specified input tax credit shall be
liable to be recovered in accordance with
the provisions of Section 142(8)(a).
Manufacture may in accordance with the
provisions of the existing law, transfer the
said goods to the premises of any registered
person for the purpose of supplying
therefrom on payment of tax in India or
without payment of tax for exports within
the period specified in this sub-section.
TRANSITIONAL PROVISIONS RELATING TO JOB WORK
On AD-Job Worker & Manufacture require to declare the details of stock held by job work
© CA Mohit Singhal

15. Appointed Day- Finished Goods
Excisable goods manufactured at a
place of business had been removed
without payment of duty for carrying
out tests or any other process not
amounting to manufacture, to any
other premises.
No tax shall be payable if such goods
are returned to the said place within six
months(or further period of 2 months
as extended by commissioner) from the
appointed day after undergoing tests or
any other process,.
If such goods are not returned within the
period specified input tax credit shall be
liable to be recovered in accordance with
the provisions of Section 142(8)(a).
Manufacture may in accordance with the
provisions of the existing law, transfer the
said goods from the said other premises on
payment of tax in India or without payment
of tax for exports within the period specified
in this sub-section
TRANSITIONAL PROVISIONS RELATING TO JOB WORK
On AD-Job Worker & Manufacture require to declare the details of stock held by job work
© CA Mohit Singhal

16. Appointed Day- Duty paid Goods Returned
Duty paid goods removed under
existing law
Returned after appointed day:-
If by unregistered person- Entitled for
refund under earlier act.
If by registered person- Deemed to be
supply
MISCELLANEOUS TRANSITIONAL PROVISIONS
Prior to 6 Months Within 6 Months
Appointed Day- Refund of tax for services not provided
Every claim filed by a person after
the appointed day for refund of tax
paid under the existing law in
respect of services not provided-
shall be disposed of in accordance with
the provisions of existing law and paid in
cash subjected to 11B(2) of the Central
Excise Act, 1944.
No Treatment
© CA Mohit Singhal

17. Appointed Day- Upward revision in price
Contract entered into prior to the
appointed day
Price of any goods or services or both is
revised upwards on or after the
appointed day,
Registered person who had removed or
provided such goods or services or both
SHALL issue to the recipient a
supplementary invoice or debit note within
30 days of such revision containing
particulars as prescribed under this act.
MISCELLANEOUS TRANSITIONAL PROVISIONS
Appointed Day- Downward Revision in prices
Contract entered into prior to the
appointed day
Price of any goods or services or both is
revised downwards on or after the
appointed day,
Registered person who had removed or
provided such goods or services or both
MAY issue to the recipient a credit note
within 30 days of such revision containing
particulars as prescribed under this act.
© CA Mohit Singhal

18. Appointed Day- Refund of Cenvat Credit
Every claim for refund filed by any person
before, on or after the appointed day, for
refund of any amount of CENVAT credit,
duty, tax, interest or any other amount
paid under the existing law, shall be
disposed of in accordance with the
provisions of existing law and shall be paid
in cash subjected to section 11B(2) of the
Central Excise Act, 1944
MISCELLANEOUS TRANSITIONAL PROVISIONS
Appointed Day- Refund of Tax or Duty Paid
Every claim for refund filed after the
appointed day for refund of any duty or
tax paid under existing law in respect of
the goods or services exported before or
after the appointed day, shall be
disposed of in accordance with the
provisions of the existing law.
No Treatment
If rejected-Shall Lapsed
No Refund –If C/f under this act.
No Treatment
If rejected-Shall Lapsed
No Refund –If C/f under this act.
© CA Mohit Singhal

19. Appointed Day- Appeal, Review or References
Relating to a claim for CENVAT credit
initiated whether before, on or after the
appointed day under the existing law shall
be disposed of in accordance with the
provisions of existing law AND if found
admissible, refunded in cash subjected to
section 11B(2).
MISCELLANEOUS TRANSITIONAL PROVISIONS
Relating to recovery of CENVAT credit
initiated whether before, on or after the
appointed day under the existing law
shall be disposed of in accordance with
the provisions of existing law AND if
found recoverable, be recovered as an
arrear of tax under this Act.
No Treatment
If rejected-No ITC
No Refund –If C/f under this act.
No Treatment
Recovered Amount-No ITC
© CA Mohit Singhal

20. Appointed Day- Appeal, Review or References
Relating to any output duty or tax liability
initiated whether before, on or after the
appointed day under the existing law shall
be disposed of in accordance with the
provisions of existing law AND if found
admissible, refunded in cash subjected to
section 11B(2).
MISCELLANEOUS TRANSITIONAL PROVISIONS
Relating to any output duty or tax liability
initiated whether before, on or after the
appointed day under the existing law
shall be disposed of in accordance with
the provisions of existing law AND if
found recoverable, be recovered as an
arrear of tax under this Act.
No Treatment
If rejected-No ITC
No Treatment
Recovered Amount-No ITC
© CA Mohit Singhal

21. Appointed Day- Revised Return
Where any return, furnished under the
existing law, is revised after the appointed
day and if, pursuant to such revision, any
amount is found to be recoverable or any
amount of CENVAT credit is found to be
inadmissible.
MISCELLANEOUS TRANSITIONAL PROVISIONS
Where any return, furnished under the
existing law, is revised after the
appointed day but within the time limit
specified for such revision under the
existing law and if, pursuant to such
revision, any amount is found to be
refundable or CENVAT credit is found to
be admissible to any taxable person
Unless recovered under the existing law, be
recovered as an arrear of tax under this Act
Recovered Amount-No ITC
Refunded in cash subjected to Section
11B(2) of the Central Excise Act, 1944
If rejected-No ITC
© CA Mohit Singhal

22. Appointed Day- Contract Entered Prior to AD
Where the goods or services or both
supplied on or after the appointed day in
pursuance of a contract entered into prior
to the appointed day
MISCELLANEOUS TRANSITIONAL PROVISIONS
VAT leviable under existing law
Service tax leviable under existing law
Shall be liable to tax under the provisions of
this Act
No tax under GST upto that extent
TDS deducted on sale of goods under
existing laws and invoice issued for the
same
No TDS Deduction under GST
© CA Mohit Singhal

23. Email ID:- fcasmc@gmail.com
Mob No:- 95553-79714
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