Transitional Provisions & its Summary - GST Ready Reckoner - GST

Transitional Provisions its Summary In order to ensure a smooth transition and to keep such challenges at the bare minimum, the GST Laws provide for various provisions relating to transition. In view of section 20 of the IGST Act, the transitional provisions of CGST Act would apply to IGST Act as well. APPOINTED DAY Section 2 (10) of the Model GST law defines as: appointed day means the date on which section 1 of this Act comes into effect. Section 1 provides for a date when the GST Act will come into force. (This date would be the commencement of the GST Law.) Summary of the Transitional Provisions The following table provides a bird s eye view of the statutory provisions dealing with transition from existing laws to the GST Laws. Section Situation Provisions 139 Registrations Existing registrations will be automatically migrated provisionally. 140(1) CENVAT Balance Existing CENVAT Balance to be carried forward subject to conditions. State VAT Balance to be carried forward only subject to production of pending documents 140(2) Capital Goods Unavailed CENVAT Credit can be availed 140(3) Stock in hand Excise Duty Credit embedded in stock to be allowed (only for last one year) 40%/60% notional CGST Credit if duty paying document not available 140(5) Goods/Services in transit Credit can be claimed within a period of 30 days from the transition date 140(6) Stock in hand for composition dealer Excise Duty Credit embedded in stock to be allowed (only for last one year) 140(7) Input Service Distributor Input Services eligible for distribution even after the transition date also 140(8) Centralised Registration Carry forward of credit in case of centralised registration of service providers 140(9) Recredit Credit already reversed on account of non payment to vendors will be available for recredit if paid within 3 months 142(1) Goods Returns From registered dealers independent supply From unregistered dealers claim refund under earlier law 142(2) Debit Note Credit Note Discharge GST Claim GST Adjustment subject to ITC Reversal by the customer 142(3) Pending Refund Claims To be adjudicated under the earlier law 142(4) Refund Claims to be filed Under the earlier law, subject to the condition of non carry forward of credit to that extent 142(5) Refund Claims On account of non-provision of service to be claimed under earlier law 142 (6 7) Pending Appeals Under the earlier law 142(8) Pending Adjudication Under the earlier law 142(9) Revised Return If results in additional tax, recoverable under the current law If results in excess credit, refund to be claimed under earlier law 142(10) Ongoing Contracts Supplies after appointed date taxable under current law 142(11) Advances If tax paid under earlier law, no tax payable under current law 142(12) Goods on Approval No tax if returned within 6 months 142(13) TDS on works contract under existing laws. Not liable if payment made after appointed date