TRANSITIONAL PROVISIONS - …northexcastudycircle.com/Image/GST_TP_BY_CA_Anoop_Gupta.pdfLuxury Tax Yes Yes Yes Yes VAT Yes Yes Yes Yes Service tax Yes Yes Yes Yes Excise Yes Yes Yes

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TRANSITIONAL PROVISIONSSECTION 148 TO SECTION 162E

Transitional provisions

Copyright @ AstraZure* 2016

Issue in Transition


Migration

Input Credit

Incomplete Transaction

Is Transitional Provision sufficient ?

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Section 165- General Provisions


Persons working in Service Tax Department, ExciseDepartment, various State VAT Departments and otherindirect tax departments

The CG/SG may issue orders/ rules, not covered here, for the smoothtransition to GST not in conflict with the GST Law.

GST Officers

and staff.

Section 166 Migration of Existing Assessee

Provisional Registration in From GST REG-

21

Valid for 6 months or extended

period

Submission of additional Information in form GST

REG-20

Final registration GST REG-06

Cancellation of Registration


The person should have valid PAN

After Provisional registration, person can opt for Composition under GST

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Form GST REG 21 (Provisional Registration) and GST REG 20 (Information Required)

Practical Case Studies (Sec 165-166)


Question 1:

Hotel ‘X’ have following registrations in the earlier laws:

How many registrations on provisional basis will be granted to Hotel ‘X’ under GST ?

Registration Lucknow Kanpur Delhi Agra

Luxury Tax Yes Yes Yes Yes

VAT Yes Yes Yes Yes

Service tax Yes Yes Yes Yes

Excise Yes Yes Yes Yes

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Question2:

‘X’ is a registered trader in the present H-VAT provisions. He is allotted provisional GSTregistration number. He is not able to furnish the required information under section166 within the time prescribed. what will be the consequences ?

Question 3:

A registered HVAT dealer having a turnover of Rupees 7 lakhs will come under GST ornot? If yes, then what will be the registration requirements and if not then how he willproceed ?



Input Credit

Credit

To registered taxable Person

Of Capital Goods

To Eligible Person

To registered person

switching over from/to composition

Scheme

Credit of goods lying at

agent

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Registered taxable person eligible to

take credit in electronic credit

ledger

ConditionsCarried forward in return immediately preceding

the appointed day.

Credit is allowed under GST.

Interstate Sales

In respect of interstate sales on the basis of declaration forms like C Form, F Form, H form etc., credit of purchases pertaining to such sales shall be allowed only to the extent such forms are received in the time

prescribed under earlier law.

Section 167- Amount of Credit carried forward in return

CENVAT as CGST Credit.

VAT as SGST Credit


Section 168- Unavailed CENVAT Credit on Capital Goods

Registered taxable person eligible to take

• CENVAT/Credit in electronic credit ledger as CGST/SGST for capital goods even if not carried forward in a return.

Conditions for availing Credit-

• Credit was admissible in the earlier law.

• Credit is allowed under GST.

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Section 169- Credit of eligible duties and taxes allowed

Credit of-Inputs held in

stock

Inputs contained in semi-finished

goods

Inputs contained in finished goods

Persons not liable to registered under the earlier law.

Manufacturer of exempted goods, Seller of Exempted goods.

Provider of Exempted services,

Works contract services with abatement under Not. No. 26/2012,

FSD, SSD or registered importer

Eligible Persons to take Credit


Conditions:

•Inputs/ goods are used for making taxable supply in GST.

•Credit is allowed under GST.

•Possession of invoice/ other document evidencing payment of tax/ duty.

•Invoice/ document issued not earlier than 12 months preceding the appointed day.

•Passes on the benefit of such credit by way of reduced prices to the recipient.

•Credit eligible on prescribed rate even if invoice or other document not available.

•Vat credit if not allowed in earlier law then cannot be claimed.

•Entry tax credit can also be claimed.

Section 169- Credit of eligible duties and taxes allowed

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Question:ABC is a trader in Gurgaon and registered under HVAT. He has a credit of Rs 20,000carried forward in his VAT return. Will he be able to take credit?

Question:ABC consultancy is a company providing services and carried forward in service tax returncredit of Rs 20,000 as credit. Will it be able to take this credit under GST?

Question:‘Y’ is a manufacturer as well as trader having tax liability of excise as well as VAT. He hascredit of Excise paid Rs. 50,000 and of VAT of Rs. 20,000. How he will transit in GST andwill take the credit?



Question‘X’, a manufacturer, purchased a machinery on 20th Feb 2017 of Rs, 1 crore and paidexcise duty of Rs. 12,50,000.

availed the credit of 50% i.e. Rs. 6,25,000 in 2016-17.closing balance of input credit as on 31.03.2017 of VAT of Rs 20,00,000 claimed inVAT returnCENVAT credit of Rs. 10 Lakhs claimed in Excise return.

How the CENVAT credit and credit of VAT will be allowed to ‘X’ under GST?

QuestionX ltd, a trader, purchased goods on 14th January 2017 worth Rs. 10 lakhs and paid VAT ofRs. 1.25 lakhs on such goods.Out of the VAT credit of 1.25 lakhs, Rs. 50K was utilized in the earlier law and Rs. 75K iscarried forward in the GST regime.Suppose, on 2nd September, 2017, the said invoice is rejected by the VAT authorities inassessment proceeding. What will be consequences of the same?

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Question

XYZ Ltd, a manufacturer purchased machinery worth Rs 20 lakhs on 21st June, 2016.• 50% of CENVAT is 20lakhs*12.5%*50%=Rs 1,25,000 is available. However XYZ Ltd

did not availed said credit in the first year.• Will this credit be available in the GST?

Question

XYZ Ltd, a manufacturer sells goods worth Rs 1,20,000 to Mohit an unregistered trader.Taxes paid by XYZ ltd are as follows:

• Excise Duty (12.5%) = Rs 15,000• VAT (5%) = [(1,20,000+ 15,000) * 5%] = Rs 6,750Apart from VAT credit, will Mohit be eligible for Excise Duty credit in the GST regime?



Question:ABC Ltd is a manufacturer manufacturing dutiable sanitary goods and having a turnover ofRs. 50,00,000. In earlier laws, he is not required to take registration under Excise.How much credit will be available if stock as on 30th June 2017 is as follows?

Components of Stock Amount Excise duty Paid

Raw Material 1,00,000 12,500

Semi-Finished Goods 2,00,000 15,000

Finished Goods 1,50,000 10,000

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QuestionSharma & Co. is a trader, selling goods including liquor (human consumption) and having total Input Tax Credit of VAT in books of Rs. 1 crore on 30th June 2017 as follows:

How much credit will be available to Sharma & Co. under GST?

Items Credit

Liquor (human consumption) 90,00,000

Other beverages 10,00,000



Question:X Ltd is a company having the following registrations:

How the credit of Excise, VAT and Service Tax will be treated under GST.? How will the Service Tax credit which is centralized in earlier law will apportioned under GST?

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Question:Trader A is engaged in trading of exempted goods under sales tax. These goods are taxableunder GST regime. Trader A has stock of Rs. 50,000 as on 30.06.2017. Trader A haspurchased these goods from Trader B, who has issued retail invoice. Will Trader A be eligiblefor the credit of VAT charged by Trader B? What about the excise element included in thegoods.



Question :Trader A has purchased goods of Rs. 59,063. Invoice details are as under:• Cost of goods: Rs. 50,000/-• Excise Duty: Rs. 6,250/-• VAT: Rs. 2,813/-• Total: Rs. 59,063/-

Trader A has sold these goods to Manufacturer B for Rs. 68,219. Invoice details are asunder:• Cost of goods: Rs. 64,970/-• VAT: Rs. 3,249/-• Total: Rs. 68,219/-

Will the Manufacturer will be eligible for the excise duty of Rs 6,250 which has become thepart of cost of goods?

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Section 170 Credit to Manufacturer/Service provider

Covered under Rule 6(3) of CENVAT Credit Rules 2004

Cenvat credit carried forward in return can be claimed

For inputs, semi-finished and finished goods held in stock as on appointed day

Credit can be claimed as per section 169.

Section 170 TRANSIT SALES

Transit sales

Inputs/input services after appointed day

Duty /tax paid before the

appointed day.

Invoice recorded

within 30 days

Further extension of

30 days

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Section 172- Credit to taxable person switching over from Composition Scheme

• Persons paying tax at a fixed rate/ amount.

Credit of-Inputs held in

stock

Inputs contained in

semi-finished goods

Inputs contained in

finished goods


• Inputs/ goods are used for making taxable supply in GST.

• Person is not paying tax under composition levy in GST.

• Credit is allowed under GST.

• Possession of invoice/ other document evidencing payment of tax/ duty.

• Invoice/ document issued not earlier than 12 months preceding the appointed day.

•In SGST, credit not allowed if credit on such inputs was not available in the earlier law.

Conditions:

Section 172- Credit to taxable person switching over from Composition Scheme

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Section 147- Amount payable by a taxable person switching over to Composition Scheme

Taxable person carriedforward the eligible creditin a return of earlier lawimmediately precedingthe appointed day

Switch over toComposition schemeunder Section 8.

Pay amount equal tocredit of inputs held instock, semi-finished goodsand finished goods.

The balance if anylying in the electroniccredit ledger will lapse.

Practical Case Studies (Sec 172)


Question‘X’ is a kiln clink owner and opted for composition scheme under current VAT laws andpaying tax at a fixed rate. On 1st July 2017, X went under the normal scheme andbecome a taxable person under GST. ‘X’ has stock of Rs. 12,00,000/- (inclusive of VAT Rs.1,00,000/-) lying on 30th June, 2017. What will happen to the tax paid by ‘X’ in transitionto GST?

Question‘Y’ is a Halwai registered under H-VAT and discharging VAT liability at a fixed amount (perBhatti) under the composition scheme. ‘Y’ has paid Rs. 25,000 as an input VAT onpurchases of the goods lying in stock on 30th June 2017. Will the amount of VAT paid oninputs be eligible to ‘Y’ under GST as credit?

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Question

‘Y’ is a builder who is involved in building flats in Delhi/NCR and registered under thecomposition scheme of 1% under VAT. As a works contractor, Y is discharging tax liabilityunder services tax and VAT both.Service tax credit lying in service tax return as on 30th June, 2017: Rs. 25,00,000/-.

Being a composition tax payer Y is not getting credit of VAT paid on inputs. Input taxespaid by Y on the goods lying in stock on 30th June, 2017 is Rs 7,50,000/-.

How will these credit be treated under GST?



QuestionXYZ Ltd. is involved in production and packing of Pan Masala and is paying Rs. 64,80,000(300 pouches*60*12*30) of excise duty per month. It has closing stock as on 30th June,2017 of Rs. 4 crore including excise duty paid of Rs. 35 lakhs.XYZ Ltd. is not eligible to avail CENVAT credit of the excise duty paid because it has opted forcompounded levy in excise law. How XYZ Ltd. will get credit under GST?

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Section 173 - Exempted goods returned on/after appointed day


Exempted Goods Sold in Previous regime

No Tax is payableon return of goods

Removed/ sold before 6 months of Appointed Day

Returned after 6 months of Appointed Day

Taxable if any one of condition is not fulfilled

No tax shall be payable if the person returning the goods

is not registered in GST.

• Even if returned after 6 months

Section 174-Duty paid goods returned on/after appointed day


Duty Paid Goods Sold in Previous regime

Returned by an unregistered person within 6 months

Returned by a registered person

Refund of duty paid earlier to the seller

To be treated as a taxable supply under GST

With in 6 months prior to the appointed day

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Question

XYZ Ltd. sold certain exempted goods to ABC Ltd. on 20th February, 2017 amounting to Rs1,00,000 on which VAT has been paid @ 12.5% i.e. Rs 12,500. What will be the consequences inthe GST regime if the goods are returned by the ABC Ltd. to the place of business of XYZ Ltd.a) On 15th September, 2017b) On 02nd February 2018

Question

XYZ Ltd. sold duty paid goods to ABC Ltd. on 24th September, 2016. The goods are retuned by ABCLtd. to the place of business of XYZ Ltd. on 17th August, 2017. What will be the consequences inthe GST regime?

Practical Case Studies sec (173-174)

Question

Suppose A, a manufacturer sold certain goods amounting to Rs 2,00,000 on 2nd March,2017 to B. These goods are exempt from excise duty but 5% VAT is payable on it. What willbe the consequences in the GST Regime if the goods are returned to the place of businessof business of A.-

a) 3rd July, 2017

b) 10th February, 2018

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Section 175- Inputs removed for job work and returned on or after the appointed day

• If inputs received in a factory/place of business had been removed/dispatched as such orpartially processed to a job worker for further processing, testing, repair, reconditioningor any other purposes in accordance with the provisions of earlier law and are taxableunder this Act, are returned to said factory/place of business after the completion of Jobwork:

Input Returned to Principal

Within SixMonths

Not Taxable under GST

Input tax credit shall berecovered as an arrear oftax under GST

The provisions will apply only if themanufacturer and Job worker declare thedetails of inputs held in stock.

Not Within SixMonths

Shall not be allowed as ITC

Section 176- Semi-Finished goods removed for job work and returned on or after the appointed day

• If semi finished goods has been removed/dispatched from the factory/place ofbusiness for carrying out certain manufacturing processes in accordance with theprovisions of earlier law and are taxable under this Act, are returned to saidfactory/place of business after undergoing manufacturing processes.

Semi Finished goods Returned to Principal

Within SixMonths


Input tax credit shall berecovered as an arrearof tax under GST



The manufacturer maytransfer the said goods tothe premises of anyregistered taxable personfor the purpose ofsupplying therefrom onpayment of tax in Indiaand without payment oftax for exports within sixmonths from theappointed day.

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Section 177: Finished goods removed for carrying out certain processes and returned on or after the appointed day

• Where any excisable goods (manufactured in a factory) removed without payment of duty orgoods dispatched from the place of business for carrying out tests or any other process notamounting to manufacture to any other premises whether registered or not in accordance withthe provisions of earlier law and are taxable under this Act are returned to the said factory/placeof business after undergoing test or any other process.

Finished goods Returned to Principal

Within SixMonths


Input tax credit shall berecovered as an arrearof tax under GST


The manufacturer may inaccordance with earlierlaws transfer the saidgoods from the said otherpremises on payment oftax in India and withoutpayment of tax forexports within six monthsfrom the appointed day.




Question

X Ltd is engaged in manufacturing of shirts and sent a single lot of 1000 shirts to Ghanshyam (job worker) for tagging of brand on the collar of shirt on 30th September 2016. Value of shirt is Rs. 1,00,000 on which X Ltd booked the credit of Rs 10,000. What will be the tax treatment if: -?

• Ghanshyam returned goods on 15th September 2017

• Ghanshyam returned goods on 30th October 2018

X ltd made the final supply of returned goods on 15th November 2018 for Rs 1,25,000.

Question

If in the above question, goods are directly transferred from the premises of Ghanshyam (Job worker) to a customer.

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Question

In case goods are transferred from Ghanshyam’s premises to the Warehouse/Saledepot/Branch of ‘X’ Ltd then what will be the tax treatment.

• Within six months from 1st July 2017

• After six months from 1st July 2017


Section 178: Issue of Supplementary Invoices, debit or credit noteswhere price is revised in pursuance of a contract

• If the price of goods and/or services is revised upward after the appointed day in pursuance of a contract entered into prior to the appointed day then:

The taxable person who has removed/sold such goods or provided such services may

Issue a supplementary invoice/debit note

to the recipient

Within thirty days of such price revision

Copyright @ AstraZure* 2016Such Invoice/debit note is deemed to have been issued i.r.o. outward supply under GST.

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Section 178: Issue of Supplementary Invoices, debit or credit notes where price is revised in pursuance of a contract


• If the price of goods and/or services is revised downward after the appointed day in pursuance of a contract entered into prior to the appointed day then:

The taxable person who has removed/sold such goods or provided such services may

Issue a supplementary invoice/credit note

To the recipient

Within thirty days of such price revision

The Taxable person is allowed to reduce its tax liability only if the recipient reduced his corresponding Input Tax Credit

Such Invoice/debit note is deemed to have been issued i.r.o. outward supply under GST.


Question

ABC ltd is a manufacturer and sold goods worth Rs 10,00,000 on 28th February 2017 and paidExcise duty of Rs 1,25,000 and Vat 1,40,625 (12.5%).

• Case A: - On 5th July 2017 price revised to 11,00,000

• Case B: - On 5th July 2017 price revised to 9,00,000


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Section 179: Pending refund claims to be disposed of underearlier law• Every refund claim filed by any person before or after the appointed day shall be disposed of as per the

provisions of earlier law and be paid in cash if any amount eventually accrue.


In case any claim for refund is fully or

partially rejected the amount so rejected

shall lapseNo refund claim to beallowed if credit iscarried forward in ECL.

Section 180: Refund claims for export.

APPOINTED DAY

To be disposed off under earlier law.

Refund filed after

Goods/Services Exported whether

before/after

Duty paid before


1. If the refund is rejectedthen the credit shall lapse

2. If credit is carriedforward in the return,then no refund isallowed.

3. Only for CGST

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Section 181: Refund claims for services not provided.

APPOINTED DAY

To be disposed off under earlier law.

Refund filed after

Refund filed for services not provided

Duty paid before


Section 182: Claim of Cenvat Credit to be disposed of under earlier law• Every proceeding of appeal, revision, review or reference relating to a claim for Cenvat Credit/Input

tax credit initiated whether before, on or after the appointed day under the earlier law shall bedisposed of as per the provisions of earlier law and be paid in cash if any amount eventually accrue.

• Every proceeding of appeal, revision, review or reference relating to a claim for Cenvat Credit/Inputtax credit initiated whether before, on or after the appointed day under the earlier law shall bedisposed of as per the provisions of earlier law and as a result if any amount of credit becomesrecoverable, the same shall be recovered as an arrear of tax under this Act.


Where the credit is carried forward in return as on appointed day, no refund

shall be allowed.

Where the credit is carried forward in return as on appointed day, no refund

shall be allowed.

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Section 183: Finalization of proceedings relating to output liability

• Every proceeding of appeal, revision, review or reference relating to any output duty/taxliability initiated whether before, on or after the appointed day shall be disposed of as per theprovisions of earlier law and as a result if any amount of liability becomes recoverable, thesame shall be recovered as an arrear of tax under this Act.

• Every proceeding of appeal, revision, review or reference relating to any output duty/taxliability initiated before, on or after the appointed day shall be disposed of as per theprovisions of earlier law and be paid in cash if any amount eventually accrue.


The amount so refunded shall not be admissible as ITC under GST

The amount so recovered shall not be admissible as ITC under GST

Section 184: Treatment of the amount recovered or refunded in pursuanceof assessment or adjudication proceedings

• If any amount of tax, interest, fine or penalty becomes recoverable from the taxable personafter the appointed day in pursuance to an assessment or adjudication instituted before, onor after the appointed day under the earlier law, the same shall be recovered as an arrear oftax under GST.

• If any amount of tax, interest, fine or penalty becomes refundable to the taxable person inpursuance to an assessment or adjudication instituted before, on or after the appointed dayunder the earlier law, the same shall be refunded to him in cash.


The amount so refunded shall not be admissible as ITC under GST


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Section 185: Treatment of the amount recovered orrefunded pursuant to revision of returns

• If return filed under earlier law is revised after the appointed day and due to suchrevision any amount is found recoverable from taxable person, or any amount ofcredit is found to be admissible, then the same shall be recovered as an arrear oftax under GST.

• If return filed under earlier law is revised after the appointed day but within thetime limit prescribed for revision under earlier law and due to such revision anyamount is found to be refundable or credit is found to be admissible to thetaxable person then the same shall be refunded to him in cash under the earlierlaw.





Question

Mr. X has provided some services outside India (U.K) qualified as export of services under Rule6A of Service Tax Rules, 1994. He has filed refund claim amounting to Rs. 5,00,000/-of CENVATCredit of service tax paid on input services under Rule 5 CENVAT Credit Rules, 2004. How theamount will be refunded if claim is filed on:(i) 15th March 2017(ii) 25th July 2017

QuestionXYZ ltd has the following particulars in books:

Particulars Amount (Rs.)

Export Turnover 50,00,000

Domestic Turnover 20,00,000

Input Tax Credit 7,00,000

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XYZ ltd has filed for 5 Lacs of refund on proportionate basis on 15th March 2017.

The authorities passed the order of refund for 4 Lacs only considering Export Turnover amounting toRs. 40,00,000 and Total Turnover amounting to Rs. 70,00,000. What will be the consequences in GST?

Question

XYZ Ltd is a consultant filed service tax return on 25th April 2017. At the time of filing original returnXYZ ltd omitted to mention import of service of Rs. 1 crore on which liability to discharge service taxwas under RCM. Revised return was filled on 30th May 2017. What will happen if:(i) If service tax not paid at the time of filling of revised return.(ii) If service tax paid at the time of filling of revised return.



Question

X ltd carried forward CENVAT Credit of service tax return for the period October, 2016 to March,2017:Original Service Tax Return (25th April 2017): Rs. 1,00,000

Revised Service Tax Return (31st August 2017): Rs. 1,50,000

What will be the treatment under GST?

Question

X ltd carried forward VAT credit in its VAT return for quarter ended 31st March, 2017:

Original Return (25th April 2017): Rs. 1,00,000

Revised Return (31st July 2017): Rs. 1,50,000

X ltd claimed refund of Rs. 50,000 in the VAT return.

What will be the treatment under GST?


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Practical Case Studies (Sec 179-185)Question

X ltd carried forward VAT credit in its VAT return for quarter ended 31st

March, 2017:Original Return (25th April 2017): Rs. 1,00,000Revised Return (31st July 2017): Rs. 50,000What will be the treatment under GSTQuestion

ABC ltd get show cause notice under Service Tax on 15th August 2017. What will be thetreatment under GST in following scenario’s:(i) Tax payable: Rs. 50,000(ii) Refund: Rs 50,000

QuestionABC Ltd filed an appeal to CESTAT on 31th March 2017, in relation to output service tax liability ofyear 2015-2016. What will be the treatment under GST in following scenario’s:(i) Tax payable: Rs. 50,000(ii) Refund: Rs 50,000


Section 186: Treatment of Long term Construction/Works Contract

• Goods and services supplied on or after the appointed day in pursuance of a contractentered into prior to the appointed day shall be liable to GST.

Section 187: Progressive or periodic supply of goods and services

• No tax shall be payable in relation to a said supply of goods and/or services if:

on

Consideration received Appointed day Supply

(Whether in full or in part) after of goods and/or

services

Tax Paid (in full) Copyright @ AstraZure* 2016

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Question

X ltd raised following invoice on Y on 15th January, 2017:Service Charge: Rs.1,00,000Service Tax: Rs. 15,000Total: Rs. 1,15,000X Ltd. has discharged its service tax liability amounting to Rs. 15,000 on 5th February, 2017.Y paid Rs. 1,05,000 on 20th February 2017 after retaining Rs. 10,000.What will happen if Y pay Rs. 10,000 to X ltd on 16th July 2017 after introduction of GST.


Sec 188 – Point of taxation services

Notwithstanding Section 13 or 14

POT before appointed day, tax under earlier law

POT after appointed day, tax

under GST


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Sec 189 – Point of taxation goods

Notwithstanding Section 12 or 14

POT before appointed day, tax under earlier law

POT after appointed day, tax

under GST


Section 190: Credit distribution of service tax by ISD

• Input Services Distributor (ISD) is allowed to distribute credit of the servicesreceived by ISD prior to appointed day even if the invoices in relation to suchsupply received on or after appointed day.


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• A ltd is an Input Services Distributor (ISD) registered in Delhi as ISD. In addition,A ltd has branch office in Delhi and Gurgaon. A Ltd receives invoice of advisoryservices on 29th March 2017 for Rs 50,000 in office registered as ISD. Invoicedetails are as under:

Service Charge: Rs. 50,000

Service Tax: Rs. 7,500

Total: Rs. 57,500

In addition to this A Ltd also has CENVAT Credit of service tax of Rs 3,00,000 inservice tax return for the period October, 2016 to March, 2017. How the credit ofabove will be allowed in GST to A ltd.


Section 191 – Centralized Registration

CENTRALISED REGISTRATION

Allowed to take credit in GST for amount C/f in the return/revised return

• Should be filed within 3 months from the appointed day.

• Revised return can be made only for the reduction in credit.

Credit may be transferred to any registered taxable person having same PAN


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Section 192: Tax paid on goods lying with the agents to be allowed as credit

Conditions:

• Agent should be a registered taxableperson under GST

• Both principal and agent declared thedetails of such stock lying with agent

• The invoice shall not be earlier than 1stJuly 2016.

• Principal has to reverse the credit availed

on such goods if any.

Goods belonging to theprincipal are lying at thepremises of an agent

principal shall reverse the credit

Agent shall take the credit

Section 193: Tax paid on Capital goods lying with the agents to be allowed as credit

• If any capital goods belonging to the principal are lying at the premises of an agent then the agent iseligible to take credit of such goods if the following conditions are fulfilled:

• Agent should be a registered taxable person under GST

• Both principal and agent declared the details of such stock lying with agent

• The invoice shall not be earlier than 1st July 2016.

• Principal has to reverse the credit availed on such goods if any.

Practical Case Studies

A ltd has his agent B with whom some Inputs/Capital goods of the value of Rs 5,00,000 (VAT 25,000)are lying on 30th June 2017. Who will get the credit on such goods under GST and how.?


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Section 194: Treatment of Branch Transfer

• Any amount of Input Tax Credit reversed prior to the appointed day shall not be admissible as credit ofITC under GST.

Practical Case Studies

• XYZ ltd a dealer in Delhi VAT purchases goods from the state of Delhi amounting to Rs. 50,00,000 onwhich it paid Vat of Rs. 6,25,000 and claimed credit of the same. On 1st March 2017 it transferred thesegoods to its branch in Gujrat. According to Delhi VAT Law it has to reverse 2% of 50,00,000 i.e. 10,000.How much credit will be available in GST regime?


Section 195: Goods sent on approval basis returned on or after the appointed day

• If any goods sent on approval basis not earlier than six months before the appointed date and aretaxable under GST, are rejected or not approved by the buyer and returned to the seller:

Within 6 months from appointed day After 6 months from appointed day

No Tax shall be payable Tax payable by Tax payable by

the sender on person returning

expiry of six months the goods


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Question

X Ltd is engaged in manufacturing of shirts and sent a single lot of 1000 shirts to Ghanshyamon approval basis on 15th January 2017. Value of shirt is Rs. 1,00,000 on which X Ltd bookedthe VAT credit of Rs 10,000. What will be the tax treatment if: -?

• Ghanshyam returned goods on 15th July 2017

• Ghanshyam returned goods on 30th January 2018


Section 196: Deduction of Tax at Source


• No tax shall be payable in relation to a said supply of goods and/or services if:

Sale of Goods on

which TDS required

to be Deducted

under earlier law after

Appointed day Payment received

Invoice issued

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Section 197 CENVAT Credit Reversal


CENVAT Reversed for non-payment

Can be reclaimed

If the payment for such services is made with in 3

months

Question 4:

A CA firm is having offices in ten states and operating through acentralized registration in Delhi. How it will transit to GST ?

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Thank You

CA Anoop Gupta

Email: [email protected]

Mobile: 9312263172


Documents

TRANSITIONAL PROVISIONS - …northexcastudycircle.com/Image/GST_TP_BY_CA_Anoop_Gupta.pdfLuxury Tax Yes Yes Yes Yes VAT Yes Yes Yes Yes Service tax Yes Yes Yes Yes Excise Yes Yes Yes