Form GST TRAN 1

Form GST TRAN 1 is filed by the registered taxable person who wants to claim transitional ITC (Input Tax Credit).

Form GST TRAN 1 is categorized into 12 tables on the basis of various business circumstances where ITC is allowed. The tax payers are required to fill the relevant tables of Form GST TRAN 1 as applicable to their business.

Those registering under GST as composition dealer cannot file Form GST TRAN 1. Although this form is not mandatory to fill, it is applicable only if you wish to claim the transitional credit.

Transitional credits can be availed only if the registered person has filled all the returns for preceding six months under the existing laws, otherwise, the eligibility criteria to claim transitional credit is violated.

Due date to file GST TRAN 1

The Form GST TRAN 1 needs to be filed within 90 days from the date of implementation of GST.

  • Businesses planning to avail transitional credit to discharge the tax liability of July 2017 and the due date is  28th  August 2017.
  • Businesses are not planning to avail transitional credit to discharge the tax liability of July 2017 and the due date is within 90 Days (from the appointed date 28th  Sept 2017).

Businesses required filing Form GST TRAN 1 

Businesses required to file the Form GST TRAN 1 are mentioned below:

  1. Businesses that were registered under an earlier regime like Excise, VAT or Service Tax etc. and having a closing balance of ITC in June month’s return.
  2. Registered businesses only under VAT but have closing stock as on 30th June 2017 (which suffers Excise duty).
  3. Those are not registered in earlier tax regime but are registered under GST, and have the closing stock on which tax is paid.
  4. Those are engaged in manufacturing/sale of the exempted goods (or services) but the above-mentioned goods (or services) are taxable under GST. They have a closing stock as on 30th June 2017 on which the tax is paid.
  5. Those have opted for composition scheme are allowed to claim the tax credit on closing stock held on 30th June 2017.
  6. Businesses that not availed the ITC on capital goods are allowed to claim the portion of it as Transitional Input Tax credit (ITC).
  7. A principal manufacturer who has removed the goods for job work process under the earlier regime but those goods are to be returned in GST. The details of those goods are required to be provided in Form GST TRAN 1.
  8. Similarly, a job worker is also required to file Form GST TRAN 1.

The above are the common scenarios in which the businesses are required to File Form GST TRAN 1.

Guidelines to fill Form TRAN 1

  1. In point 4 of TRAN 1, fill all the preceding returns required under existing laws.
  2. In Point 5 of TRAN 1, claim the amount of tax credit which is to be carried forward from returns filed under earlier Excise, VAT and Service Tax Laws.
  • Table 5(a) is for claiming the credit of Central taxes (includes excise and service tax) that considered as Central Tax under GST.
  • Table 5 (b) is for persons who are registered under VAT and CST.
  • Table 5 (c) is for claiming the credit of only the State taxes (VAT) which have to be carried forward as State/UT Tax in GST.

     3.  Table 6(a) is for claiming the unavailed credit of Capital Goods which has not been carried forward under existing law. You are required to fill the

  • Invoice Number;
  • Invoice Date;
  • Registration Number of the Suppliers (from capital goods are purchased);
  • Amount, Excise Duty/CVD or SAD charged;
  • Fill the total credit available from that invoice;
  • Amount of credit availed under existing law and;
  • Balance amount to be claimed under GST Law.

   4. Table 6(b) is for claiming the unavailed credit of Capital Goods which has not been carried forward under State              VAT law And Entry Tax Law.

   5. Table 7 is for the assesses who are not registered in Excise but registered in VAT or dealing in exempted goods            (under excise) or exempted services (under service tax) but they want to claim the credit of inputs held in stock.

Assesses those are manufacturers or service providers must have valid tax invoice in order to claim credit. But traders can claim the deemed credit.

Table (7) can be filled who are dealing with exempted goods (or services) and taxable goods (or services) but now those exempted goods or services are taxable under GST regime.

Table (7) has 2 sub tables naming Table 7(a) and 7(b)

  • Table 7(a) consists of details of stock required to be filled for claiming credit by the assesses who are not registered in excise but registered in VAT or dealing in exempted goods under excise or exempted services under service tax. HSN code wise stock details are required including the units, quantity, and value of such stock along with eligible duty.
  • Table 7(b) is for assesses who have already paid duty on inputs (or input services) before July 1 but goods received after July 1. They are required to fill the name of
    • Supplier;
    • Invoice number;
    • Invoice date;
    • Quantity;
    • Eligible duties and;
    • Date on which invoice is entered.
  • Table 7(b) is also for assesses who were not registered in VAT but registered in Excise or Service Tax. The stock details along with their HSN code are required including the units, quantity, and value of such stock along with eligible duty.

    6. Table 8 is for ISD registered under Service Tax. If any ISD wants to distribute credit between registered persons          under GST having the same PAN, here ISD can fill details. ISD is required to mention

  • Registration number;
  • Last return filing date;
  • Amount of credit carried forward in last return;
  • GSTIN of receivers to whom credit is transferred along with amount and;
  • Invoice number through which credit is transferred.

   7.  Table 9 is only for Job worker and Principals. They have to mention all the details of

  • Challan No. through which stock transferred;
  • Challan date;
  • Description of goods;
  • HSN Code;
  • Quantity and value so that when these goods are returned within 6 months of July 1st, GST will not be levied.

   8. Table 10 is for agents registered under VAT who have held goods on behalf of Principal. They are required to fill

        GSTIN of Principal along with a description of goods, unit, quantity, and value of such goods.

   9.  Table 11 is for assesses who are dealing in items on which both VAT and service tax is applicable and now GST              is to levied on the supply of such goods. They have to fill

  • Registration number of VAT, Service Tax, Invoice Number, Tax Paid whose credit is to be taken.

  10.  Table 12 is for assesses who sent goods on approval not before 6 months prior to July 1st. If such goods are                    received back within 6 months of July 1, no tax will be levied under GST. Therefore, they have to fill document            number and date which is used to send goods on approval. They are required to filled back within 6 months of             July 1, no tax will be levied under GST. Therefore, they have to fill document number and date which is used to            send goods on approval. They are required to fill the details

  • Mention the name and GSTIN number of the recipient to whom goods sent if any.
  • Details of such goods as HSN Code, description, Unit, Quantity and Value.

After filing all the details mentioned in the above tables, the form has to be submitted. The modification is allowed only after submitting Form TRAN 1.

In case you are confused about GST as a business owner, feel free to consult the GST experts at LegalRaasta. You can get comprehensive assistance with GST Registration and GST Return Filing. You can also use our GST software for doing end-to-end GST compliance.