In our earlier blog What is Form GST TRAN-1 and when to file it , we discussed about the due date to file Form GST TRAN-1 and different scenarios in which businesses are required to file Form GST TRAN-1 to claim the transitional input tax credit. The option to file Form GST Tran-1 is available in GST portal from 21st August, 2017. Following are the steps to file Form GST TRAN-1:
To file your Form GST TRAN-1, you need to login to GST Portal > Services > Returns > Transition Forms > Form GST TRAN-1 will be shown as below:
As shown above, Form GST- TRAN 1 contains 12 tables and you are required to capture the details only in the relevant table as applicable to your business. To capture the details, you need to enter the relevant table and click ‘Add details’.
Let us discuss the details required to be captured in filing Form GST TRAN-1.
Carry Forward of Closing Balance of Cenvat Credit and Input VAT credit – 5(a), 5(B), 5(c)
One of the most common scenarios applicable for most businesses is ‘Claiming closing balance of Cenvat and Input VAT credit available’ as on 30th June, 2017. This scenario is applicable to registered businesses who have closing balance of input tax credit and if they meet the conditions for claiming this credit, CENVAT credit will be carried forwarded as CGST and Input VAT credit will be carried forwarded as SGST Credit.
Businesses claiming the above mentioned transitional credit need to capture the details in Table No 5 of Form GST TRAN-1. The table 5 will be available only when returns for last 6 months are filed and the option is set to ‘yes’.
While filing GST TRAN-1 in GST portal , the details of closing balance of CENVAT need to be captured in Table No 5(a) and for claiming Input VAT credit, you need to capture the details in 5(b) and 5(c). In 5(b), you need to capture details of Statutory Forms such as C Forms, H Forms, and so on, issued from 1st April, 2015 to 30th June, 2017 and in 5(c), amount of eligible input VAT (including Entry tax) needs to be captured.
Table 5(a) – Capture the amount of Cenvat including Service Tax carried from earlier regime
Table 5(b) Details of statutory forms received for which credit is being carried forward
As shown above, you need to add form wise details. From the list of form types, select the relevant form, capture the details of Issuers TIN number, name, serial number and taxable value of sales affected. In Applicable VAT Rate, mention the actual VAT rate applicable for the product.
Please note, if you have more than 100 records to be captured in above table, please don’t fill the above table. Instead, excel based offline utility is being enabled and will be available shortly. You can fill the details in that utility and upload the same.
Table 5(c) – Details of VAT Credit carried forward
In the above section, you need to manually enter the following details:
- VAT registration number
- Balance input tax credit including entry tax as per the last VAT return
- Enter the turnover or which C forms have not been received and are still pending.
- Compute the differential tax amount (Actual VAT Rate applicable on the product (minus) 2% CST charged already.
- Capture the value of any ITC reversal related to FormsC & F.
- Similarly, provide the details of turnover and differential tax payable amount for forms pending of Form F, H & I.
- Transition ITC will be auto calculated based on the above values provided by you.
For example, turnover for which C forms are pending is Rs.5, 000. The actual VAT rate of goods sold is 14.5% and tax charged on sale against C form was 2 %. To arrive at the differential tax payable on pending forms, apply the following formula:
(Actual VAT Rate – Rate applied in sale) * Turnover for which C forms are pending divided by 100.
In the above case, 14.5 % – 2% = 12.5% * 5,000 which will be 625. Similarly, the details of the other forms need to be calculated. In the fields which are not applicable to you, you need to mention ‘0’ and based on the details provided, the transition ITC will be auto calculated.
As shown in the image, the balance ITC as per last return was 35,000 and difference tax payable on account of C and F forms pending is 988 (625+363). Now, the transitional ITC of 34,012 will be auto calculated.
We have explained each of the above tables in detail here – How to Carry Forward Closing Balance of ITC from Earlier Regime to GST?.
Steps to file the details discussed above of Form GST-TRAN-1 in GST Portal
Click on Table 5 > the dashboard with Central Tax, Statutory Forms and State/UT Tax will open > to capture the details under the relevant head, click ‘Add details’ option available at the bottom of the page.
To download GST TRAN-1 format, click here
In upcoming blog, we will be discussing on How to File GST TRAN-1 with details of unavailed credit on capital goods.
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Source : http://blogs.tallysolutions.com/how-to-file-form-gst-tran1-transitional-credit-cenvat-input-vat/