GST – TRANSITIONAL AND
CRITICAL PROVISIONS
CA. SANJEEV MALHOTRA
FCA, FCS, ACMA, LL.B.
Sanjeevmalhotrablog.wordpress.com/
[email protected]
Registration Provisions Sec 139
Registered taxable person under either of Central
Excise/ Service Tax/State VAT having valid PAN to fill
Form GST REG 20.
A provisional certificate will be issued to him on
appointed day
Provisional certificate to be valid for 6 months
Final certificate to be issued on completeness of
documents
Failure to furnish within 6 months will lead to
cancellation of Registration.
 Optional cancellation – file form GST REG 24
 No migration for Centralised registration in Service tax
 ISD – Need to apply afresh.

Carry over of Credits.. 140
The closing balance of CENVAT Credit / VAT Input tax
credit to become opening balance of CGST / SGST in
GST.

 Credit should be eligible in earlier law and in GST also.
Furnished all returns during previous six months.
 Credit does not relate to goods manufactured and cleared under
exemption notification.
 Claim application in Form GST TRAN 01 to be filed within 60 days of
appointed day.

Recovery of credit under earlier law to be considered
as arrear of tax in GST.
 For SGST applicant shall specify separately

 Value of claims under Section 3, 5(3), 6, 6A, 8A of CST.
 The
Sr. no. and value of declarations in Form C/F and/or certificates in form
E/H or I specified in Rule 12 of CST rules.
The
unavailed credit on Capital goods in CENVAT /
Input tax credit to be eligible in GST as CGST / SGST.
Not Registered or Composition – Sec 140
Registered taxable person not liable to be registered
earlier, or
Dealing in exempted goods under earlier law.
Composition dealers earlier
 First stage / second stage dealers or registered importers.

 Goods are taxable in GST
 ITC to be eligible in GST
 Eligible for credit in GST of inputs held in stock/ Semi-finished goods/
finished goods.
 He should be in possession of invoice or other credit taking documents
 Documents should not be earlier than 12 months preceding appointed day.
In case not in possession of tax paying documents
then credit of 40% tax for six months. the said taxable
person passes on the benefit of such credit by
way of reduced prices to the recipient;

Manufacturer of taxable and exempted goods
Registered taxable person who manufactures taxable
and exempted goods.
 Manufacturer paying duty at fixed rate or fixed
amount.

Goods are taxable in GST
 Eligible for carry forward of credits in his return.
Eligible for credit in GST of inputs held in stock/ Semi-finished goods/
finished goods in relation to exempted goods.
 He should be in possession of invoice or other credit taking documents
 Documents should not be earlier than 12 months preceding appointed
day.

Goods or Services in transit on appointed day
Duty or tax was paid before the appointed day.
Eligible for credit after appointed day

Condition that
 invoice is recorded within 30 days of AD.
 This period of 30 days can be extended by another 30 days by
Commissioner.
 Shall furnish a statement in the required manner.
Credit reversed in Service tax due to non payment of
consideration within 3 months.

 Is eligible in GST provided the payment is made within 3 months of
appointed day otherwise it will be lost.
Input Service Distributor / Centralised Regn.
Registered ISD takes registration in GST as well.
Eligible for credit carried forward in the returns.

 If original return is furnished within 3 months of appointed day.
Or revised return where the credit has been reduced from what was
claimed earlier.
 Such amount is admissible for ITC in GST.

Centralised Registration cases - Such credit can also be
transferred to any other person having the same PAN.

 Services
received prior to appointed day by ISD for
which bills are received after appointed day.
 Eligible to be distributed by such ISD even if invoices are received on
or after appointed day.
Job Work Goods returned after appointed day
Received
back within 6 months (8 months, if
extended by Commissioner) of appointed day
No tax shall be payable if manufacturer and job
worker had declared this stock on the
appointed day.
Tax will be payable by job worker if such inputs are
sent back after 6 months or extended period.
Tax will be payable by manufacturer if goods sent
are not received back within 6 months (8 months, if
extended)of their sending to job worker.
Manufacturer may clear these goods from the
premises of job worker for supplying to another
person on payment of tax or for export.
Goods returned after appointed day
Removed not earlier than 6 months prior to
appointed day
Returned within 6 months of appointed day.
 Returned by person not registered.

 Eligible for refund of duty paid in existing law.

Provided such goods are identifiable by proper officer of GST.
Returned

by registered person.
Return of goods will be deemed as a supply.
Price revision after appointed day
In pursuance of contract entered prior to AD.
 Revised upward, Supplementary invoice or debit
note issuance within 30 days of revision.

 Will be treated as outward supply under GST.
Downward revision, Supplementary invoice or
credit note issuance within 30 days of revision.

 Will be treated issued under GST.

Recipient to get credit only if the Supplier reverses equivalent tax.
Matters to be disposed off under earlier law
Pending refund claims filed before or after AD in
respect of cenvat credit, duty, tax or interest.
 Filed after AD for goods cleared before AD and
exported before or after AD

 All such claims will be paid in cash.
Claims fully or partially rejected, amount would lapse.
 No claim will be allowed in case cenvat credit in respect of such
claim has been carried forward in GST.

Filed
after the AD for services not rendered but
tax deposited and payment received before AD
would be settled in cash.
Finalization of proceeding relating to tax liability.
Matters to be disposed off under earlier law
Finalization
of proceeding relating to CENVAT
credit.
 Finalization of proceedings relating to output duty.
 Finalization of any adjudication proceedings.
 Revision of return after the appointed day.
 claim Found admissible would be paid in cash.
 Amount
rejected shall not be eligible for carry forward.
 No refund shall be allowed if such cenvat credit has been carried
forward.

IN case any such proceeding results in recovery.
would
be recovered as arrear of tax under GST.
 Amount so recovered shall not be eligible for input tax credit.
Goods Sent on Approval basis
Removed not earlier than 6 months prior to
appointed day
Rejected and returned.

 no tax shall be payable provided
returned within 6 months (extendable by another 2 months by
Commissioner) of appointed day.


Not Returned within permitted time.
 tax at the applicable rate in GST would be payable by person returning
the goods.
 tax at the applicable rate in GST would be payable by person who had
sent such goods.
Transaction on which TDS applicable
 TDS
was applicable in earlier law also.
 Invoice issued before appointed day and payment
was received after appointed day.
 no TDS in GST would be collected.

If TDS was deducted in earlier law.
Schedule I Entries
Permanent transfer or disposal of business assets
on which ITC has been taken.
 Supply of services between related persons /
distinct persons.
 Importation of services from a related person /
distinct person.
 Rule 6(7) of Valuation Rules, NIL value of notified
services.
 Gifts by an employer to an employee of value not
exceeding Rs. 50000/- in a FY.

Composite Supply and Mixed Supply

Composite Supply
 Consisting of two or more taxable supplies
Naturally bundled
 Supplied in conjunction with each other
 one of which is principal supply.


Mixed Supply
 Two or more individual supplies of goods or services.
Made in conjunction with each other.
 For a single price
 Where supply does not constitute a composite supply.

Implication of Section 9(4)
Supply of taxable goods / services by a supplier
who is not registered.
 to a registered person.
 Shall be paid by recipient on reverse charge basis.

GST on perquisites
Provisio of entry 2 of Schedule I
TOGETHER WITH
 Section 9(4) of GST Act

Composition levy Sec 10
Effect of multiple PAN
 Exports barred for such registered person.

THANK
YOU
CA. SANJEEV MALHOTRA
FCA, FCS, ACMA, LL.B.
[email protected]
Sanjeevmalhotrablog.wordpress.com/
9810995282