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TMI BlogVerification of TRAN-1 credits.X X X X Extracts X X X X X X X X Extracts X X X X ..... This Circular gives guidelines on issues such as allowing credit, as per revised return, verification of CST declarations, verification of MVAT credit etc...... Background Earlier, guidelines have been given to the departmental officials for verification of TRAN-1 credit by Internal Circulars referred above. In most of the cases, verification must have been done. However, some queries have been received from the departmental officials and tax payers and hence further guidelines are being given in this circular. For the sake of consistency in the terminology, the term dealer is used for tax-payers. 2. Credit as per revised return under MVAT: Earlier by Internal Circular No. 1A of 2018 and 23A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The difference in amount of such credit as per the original return and the revised return can be considered during MVAT assessment proceedings of the said dealer. In case, such dealer has not applied in e-501 for MVAT refund, then the dealer may make a request in writing to the nodal authority. The nodal authority, after verification of such request, shall send it to the Zonal Selection Committee through proper channel. c) files revised MVAT return and mentions lesser amount in the field excess credit carried forward to subsequent tax period . Clarification: In this situation, the credit may be allowed to be claimed in TRAN- 1 , as per the revised return. ii. Situation 2: A dealer has carried fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll be compared and the lesser of these two amounts shall be allowed to be claimed in TRAN-1 . It goes without saying that in no case, the dealer shall be eligible for MVAT refund of excess credit as well as to claim it in TRAN-1 in respect of the same credit and hence the MVAT refund application shall not be considered for the grant of refund. In any case the nodal authorities shall ensure avoidance of such duplicate claims. 3. Verification of CST declarations: Verification of CST declarations is necessary to determine the credit eligible to be taken u/s 140(1) and u/s 140(4)(a) of the MGST Act. A. Periods for which verification to be done: A dealer, who has carried forward credit in his MVA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f credit carried forward in their MVAT returns for the period ending on 30th June, 2017 because they were not in possession of all CST declarations. Subsequently, such CST declarations may have been received by Chem. Clarification : In such cases, credit claimed in TRAN-1 u/ s 140(1), supported by valid CST declarations, should only be allowed. However, in any case, as provided in the Proviso to sec. 140(1), such dealers may ask for MVAT refund, if otherwise eligible. In case, such a dealer has not filed an application for refund in e-501, then he may make a request in writing for taking up his case for MVAT/ CST assessment to grant MVAT refund. The nodal authority, after verification of such request shall send the application ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5. TRAN-1 verification process : A. Issuing of DRC-01A DRC-01: Proceedings u/ s 73 must have been initiated by issuing show cause notice along with summary in DRC-01 [Rule 142(1)(a)]. Rule 142 has now been amended by notification No. 49 dated 9th Oct. 2019. In view of this amendment, if is now necessary to communicate details of any tax and interest, as ascertained by the nodal authority, in Part A of the newly introduced Form DRC-01A before issuing show cause notice and summary in DRC-01 . Such communication in may be made physically to the dealers till this functional utilily becomes available on the GSTN BO System. B. Intimation in DRC-03: Dealers must have been informing about the payments made by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing of TRAN- 1 till the date the dealer reverses such excess credit in GSTR-3B (as per earlier instructions) or makes payment and informs either in DRC-03 or in Part B of DRC-01A . 2. Revised TRAN-1 : In case, a dealer has filed a revised TRAN-1 and has increased the amount of MVAT credit, which is found to be inadmissible, then interest shall be payable u/ s 50 from the date of submission of such revised TRAN-1, in respect of such inadmissible credit claimed in revised TRAN-1 . 7. Difficulty, if any, in implementation of this circular may please be brought to the notice of this office. (Rajiv Jalota) Commissioner of Sales Tax, Maharashtra State, Mumbai Date 19.10 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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