Transition of The Old Input Credits under VAT to GST – TRAN 1


    Making sure their registered firms under GST do not miss out on the tax advantages and input credits of the previous system is a top priority. These taxes may have been paid when purchasing inputs, raw materials, semi-finished items, and final goods. On July 30th, these taxes will be accessible to most enterprises as an input credit. Moving these to the GST regime is important to take benefit of them. 

    The Central Board of Excise And Customs (CBEC) has released transition rules and formats, and with the help of these, businesses can move the credit of the old regime to GST.

    How To Claim ITC On Old Stock?

    Any businesses having a closing stock, whether registered or not before GST, will be entitled to claim credit of tax paid under the pre-GST regime. This claim of ITC also depends on a few conditions, which we will discuss further. 

    To help business transactions smoothly and carry forward their input tax credit, the CBEC has released 2 transaction forms called TRAN1 and TRAN2. Both these forms can be filled out on Busy. 

    Form TypeWho Can FileWho Cannot File
    TRAN 1Under the previous system, Registered Persons under GST could be Registered or Unregistered. Those registered under GST as composition dealer
    TRAN 2A registered person under GST but unregistered or under the old regime, A dealer or trader who doesn’t have documents of duty paidA manufacturer who is excise tax registered and a service provider who is service tax registered

    Only one revision of TRAN 1 is allowed. There can be no more changes after the correction.

    Aspects Of Transition To GST

    Transaction aspects mainly relate to  

    Things To Remember For Transition To GST

    Information Required In TRAN 1

    Below is the list of all the details required in TRAN 1

    1. GSTIN – Mention your GSTIN number
    2. Legal Name Of Registered Person – Mention your full legal name.
    3. Trade Name – If you are using any trade name, then mention it here
    4. Verify That You Have Completed and Filed All Returns Necessary Under Existing Law for the Past Six Months – The response should be in yes/no. Only if you filed returns for the preceding six months under the previous regime will you be able to accept the closing balance of past returns’ CENVAT/VAT credit as a credit in your GST electronic ledger.
    5. Tax credit Carried Forward In The Return Filed Uner Existing Laws: Under this, you must provide details of all the CENVAT credits you want to move to GST.
    6. The Details To Be Provided As Under.

    Sections 140(1) and 140(4a): Amount of CENVAT credit carried over to the electronic credit ledger as central tax (Central Excise and Service Tax): Applicable for a registered person other than the person paying tax under the old regime and has furnished the returns under the old regime. (Section 140 (1) of the CGST act. 

    Input credit related to a taxable supply where the registered person was providing/manufacturing both taxable as well as exe3mpte goods and services under the old regime (Section 140(4)(a) of the CGST act).

    This person can claim the excise and service tax input credit balance shown in return. So this table must be filled if you are registered as a manufacturer or service provider and have a closing balance of CENVAT credit in your return for the end of the given period.

    The following details have to be provided-

    1. Serial No
    2. Please provide your central excise and service tax registration number(both are unique 15-digit numbers) Registered under current law.
    3. Tax period to which the last return filed under the existing law pertains- Give the period of the last return filed by you. For example, if you are an excise manufacturer, you must file monthly ER-1 and quarterly ER-3. You should include details of both of these returns that were submitted in the previous six months throughout this time. 
    4. Provide the return dates as given above. The date of Filing of The Return is Specified in Table Input 3.
    5. Provide the amount of CENVAT credit you have carried forward for each return, and the balance of CENVAT carried over from the previous return.
    6. According to transitional rules, CENVAT credit is permitted as a central tax ITC – Provide the amount of credit you are eligible to carry out of the credit appearing in old return forms. 

    2. Tax Credit for C forms, F forms and H/I Forms which you want to carry forward:

    Give the following details for each of these forms: TIN of Issuer, Name of Issuer, Form Amount, and Applicable VAT Rate.

    State/UT tax credit Tax for unpaid C Forms, unpaid F Forms, and unpaid H/I Forms (For all registrations on the same PAN and in the same state) –

    If you are registered under any state VAT and have any pending C Form/F Fom/H or I Form, you must pay the differential tax as you are not eligible to charge a concessional CST rate. The input tax credit that was available in the last return you submitted by you will be used to offset the differential tax payable, and any remaining credit will be carried forward under the GST regime.

    The details To Be Provided Are As Under-

    3. Details Of Capital Goods For Which Unvailed Credit Has Not Been carried forward under existing law (Section 140 [(2)] -For any unused input credit related to capital goods, you must provide details here. The credit of taxes paid on capital goods is usually spread over more than the financial year. In case you could not fully claim, the input credit of taxes paid on capital goods is generally spread over more than one financial year. 

    Section 140(2) of the CGST Act basically refers to carrying forward CENVAT credit for capital used which was not carried forward in an earlier return; it will be included in 5a mentioned above.

    This information has to be provided under 7a. And 7b. Below 

    4. The central tax portion of unavailed input tax credit on capital goods Amount of Unavailed cenvant credit for capital goods which you want to carry forward to the electronic ledger as central tax, which is for CENVAT or excise, or countervailing duty or special additional duty (central taxes). In this table, you have to give details of unavailed CENVAT Credit of excise duty or special additional duty or CVD of capital goods-

    5. State/UT tax part of capital goods’ unused input tax credit: Unused input tax credit amount carried forward to the electronic credit ledger as state/UT tax (For all registrations under the same PAN and in the same state) – You must detail any unclaimed CENVAT credits for VAT or Entry Tax (State/UT Tax) on capital items in this table.

    6. Details of inputs held in stock in terms of sections 140(3), 140(4)(b) and 140(6): A manufacturer or dealer who was previously unregistered or who dealt in exempt items may claim an input tax credit under this clause. This part asks for details of input held as stocks. This portion asks for detail of input held as stocks. This portion of TRAN 1 basically applies to a business registered under GST but  

    It applies to a person manufacturing taxable and exempted goods or providing taxable and exempted services. And tax in stock/inputs was used for exempted supply under the old regime but is taxable under GST. 

    Section 140 (4)(b) of the CGST Act also applies to a person registered as a composition dealer (paying tax at a fixed rate or fixed amount) in the old regime but a normally registered taxpayer under GST. A credit of eligible taxes can be claimed for stocks they hold in the following condition. 

    Amount of VAT and entry tax paid on inputs supported by invoices or other documents proving tax payment carried forward as SGST or UTGST under sections 140(3), 140(4)(b), and 140 (6)

    7. Details of transfer of cenvat credit for registered persons having centralized registration under existing law [section 140(8)] 

    This is applicable for transferring input tax credits related to service tax. The following details are required:

    8. Details of goods sent to the job worker and held in his stock on behalf of the principal under section 141       

    A principal who has sent goods to the job worker must fill-

    9. Held as Job-Worker: If you are a job worker, then you must give details of goods held by you for the principal in 9 (b) – 

    10. Details of the goods kept in stock as the principal’s agent pursuant to section 142(14) of the SGST act. According to Section 142(14), if any capital goods or goods belonging to the principal is at the agent’s premises on the day of the appointment, the agent may claim a tax credit for the tax paid on such goods or capital goods if he satisfies the requirements listed below.

    11. Details of goods held as an agent: If you are an agent, you must provide information regarding the stock you hold for the unsold principal in serial number 10. (a)

    12. Details of Credit As Per Section 142(11)

    This is for works contractors who pay VAT and service tax on any supply. GST shall be leviable and shall be entitled to take credit of VAT and service tax is paid by him on any supply, then GST shall be leviable, and he shall be entitled to take credit of VAT and Service Tax paid by him to the extent of supplies made. Below are the details required. 

    13. Details of Goods Sent On Approval Basis [Section 142(12)]: This is for goods that are sent on an approval basis. The following Details are required.


    The TRAN 1 format and due date play a critical role in the transition of old input credit to the Goods and Services Tax (GST) regime in India. The TRAN 1 form enables taxpayers to claim an input tax credit for taxes paid under the old tax regime and carry it forward to the new system.

    By understanding the requirements and deadlines for the TRAN 1 form, taxpayers can ensure a smooth transition to the GST system and take advantage of the input tax credit available to them. It is recommended that taxpayers seek professional guidance and support to ensure compliance with the transition process.

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