TRAN 2 Format, Due Date - Transition Of Old Input Credit To GST Regime

A dealer or trader registered for GST but not registered under the previous system may fill out Form TRAN 2. Such a dealer can use TRAN 2 to claim a tax credit on their stock as of June 30, 2017, even though they didn't have a VAT or excise invoice for it. The submission of Form GST TRAN 2 by a manufacturer or service provider is not permitted. When stock is sold, a dealer or trader must fill out TRAN 2 at the end of each month, reporting the information to be eligible for the input tax credit. He must fulfil the following conditions - 

• These goods were not excised/VAT nil-rated or completely unconditionally exempt from either of the tax. 

• The stock must be cleared by the end of December in order to qualify for the credit because this scheme will only be in effect for six months starting on July 1, 2017.

• The acquisition of such things is documented.

• The inventory of products for which credit is being claimed is stored in a way that makes it simple to find. 

TRAN 2 Format, Due Date - Transition Of Old Input Credit To GST Regime

Details To Be Filled In TRAN 2

Unavailed ITC w.r.t. Capital Goods

Stock Held Being Sent Or Received For Job Work

Goods Sent To Agent Or Consignment Dealer For Sale

Details To Be Filled In TRAN 2 

• GSTIN: Provide your GSTIN 

• Name Of Taxable Person: Provide name here

• Tax Period: Mention the month and year for which this form is being filed. 

• Information about input that was in stock as of July 1 for which you do not have an invoice or other document attesting to the payment of taxes passed over to the electronic credit ledger.

Stock held without a supporting document attesting to the payment of excise duty (central tax); if you do not have a document attesting to the payment of excise duty, you must fill out the following information: Provide the stock's details as follows. 

• In column 1, the HSN code of opening stock for the month.

• The opening stock for the month is recorded in column 2 as a unit of measure.

• The amount of opening stock for the month is listed in column 3.

• The amount of goods sold during the month is listed in column 4.

• The taxable value of goods sold for the month appears in column 5.

• If goods are sold interstate, CGST is mentioned in column 6.

• If the items are sold between states, column 7 must include the IGST payment amount. 

• Credit for central tax (input credit for CGST) claims are to be made in column 8.

• The ITC to be claimed is 60% of column 6 if the CGST is paid there is 9% or greater. Otherwise, it is 40% of column 6.

• The ITC to be claimed is 30% of column 7 if the IGST paid in that column was 18% or higher; otherwise, it is 20% of column 7.

• By subtracting the amount in column 4 from the value in column 3, the quantity of opening stock for the applicable tax period is determined in column 9.

Unavailed ITC w.r.t. Capital Goods

Under the pre-GST system, the taxpayer was not entitled to an ITC for capital goods at the time of purchase. If a registered person buys capital goods but is unable to claim the whole amount of tax paid on them, they can still claim the remaining ITC under GST. Provide the following information, invoice-by-invoice wise, for each capital good:

• Total CENVAT credit involved in such capital goods

• The amount of ITC availed or utilised till 1st July

• The amount of ITC remains unavailed or unutilised till 1st July.

Stock Held Being Sent Or Received For Job Work 

When a principal manufacturer sends his products to a job worker for job work and those products are still with the job worker as of July 1st, it counts as a stock that the principal manufacturer owns for which tax credit will be given. Both the principal manufacturers and job workers for the goods must fill out the detail. 

• Held as a job worker or on behalf of the principal.

• Send to a job worker for job work as principal.

Following are the basic details to be mentioned in the form:

• Challan number and date

• Type of goods (raw material, semi-finished/finished goods)

• Description of goods - HSN, unit, quantity, value

• GSTIN of manufacturer or job worker

Goods Sent To Agent Or Consignment Dealer For Sale

When a principal dealer or manufacturer sends his goods to an agent or consignment dealer for sale, and the stock is still with the agency or consignment dealer as of July 1st, it also counts as stock owned by both the principal dealer or manufacturer and the agent or consignment dealer.

• Held on behalf of the principal as an agent or consignment dealer.

• Send by main dealer or manufacturer to agency or consignment dealer.

Following are the basic details to be mentioned in the form:

• GSTIN of principal dealer or manufacturer

• Description of goods -unit, quantity, value and ITC to be taken

Conditions To Be Fulfiled to Claim Credit Of Central Tax and State Tax - Applicable if states offer tax on MRP schemes. 

• The state or central tax owed on this supply has already been paid.

• Such goods were not wholly exempt from excise duty or NIL-rated or under the relevant state VAT Act.

• The document for procurement of such goods is available with the registered person. 

• Furnish the details of stock held at the end of each of the 6 tax periods indicating therein the supplies of such goods effected during the tax period in FORM TRAN-2 

• The amount of credit allowed shall be credited to the electronic credit ledger. 

• The stock of goods on which the credit is availed is so stored that the registered person can easily identify it.