The Transitional Provisions Under GST
The procedure of GST Registration has already started and below you may see the complete analysis on model Goods and Service Tax (GST) Law Transitional Provisions.
In this article, we have strived to provide complete details for Transitional Provisions analysis.
FOR OFFICERS APPOINTED UNDER THE GST LAW:
Officers appointed under the Central and State laws shall be deemed to have been appointed as GST officers under the provisions of GST Act.
FOR EXISTING TAX PAYERS REGARDING REGISTRATION: Every registered dealer under any previous laws shall be issued a Certificate of Registration (RC) on a provisional basis.
This Provisional Registration Certificate shall be valid for a period of 6 months from the date of issue.
Dealers will have to submit relevant information as mentioned to the relevant authority, after the furnishing of information, RC shall be granted on a final basis by Central or State Government.
If the dealer fails to furnish the information within prescribed period then RC may be canceled.
AMOUNT OF CENVAT CARRIED FORWARD IN EARLIER RETURN:
Any registered taxable individual shall be entitled to take CENVAT credit or Value Added Tax credit carried forward in return that is furnished under previous laws. If the amount is admissible as a credit under the earlier laws or Act then credit shall be allowed.
UNAVAILED CENVAT CREDIT ON CAPITAL GOODS NOT CARRIED FORWARD IN EARLIER RETURN:
Any registered person shall be entitled to take credit of unavailed CENVAT credit on capital goods that are not carried forward in the earlier return filed under the earlier law or Act.
CREDIT OF DUTIES & TAXES IN RELATION TO INPUTS HELD IN STOCKS:
Any registered person, not liable to registration under earlier laws or dealing in exempted goods, but liable to registration under GST laws shall be entitled to take credit of eligible duties and taxes in respect of inputs held in stock.
IMPACT ON SWITCHING OVER TO COMPOSITION SCHEME:
Dealer carrying forward input tax credit in return furnished under earlier laws switches over to composition scheme under GST laws shall pay an amount equal to the credit of input tax in relation to the inputs held in stock and inputs contained in semi-finished or finished goods held in stock.
EXEMPTED GOODS RETURNED TO THE PLACE OF BUSINESS:
When goods Exempted under earlier laws are removed, not being earlier than 6 months prior to enactment of GST laws, and returned within 6 months from the date of enactment of GST law, no tax shall be payable thereon.
DUTIABLE GOODS RETURNED TO THE PLACE OF BUSINESS:
When dutiable goods, under earlier laws are removed, not being earlier than 6 months prior to enactment of GST laws, and returned within 6 months from the date of enactment of GST law, no tax shall be payable thereon.
INPUT REMOVED FOR JOB WORK & RETURNED:
Any input removed or removed after processing, to a job worker under the earlier law provisions and returned on or after the enactment of GST, no tax shall be payable if such inputs are returned to the factory within 6 months from the enactment of GST law.
Job workers shall be liable to pay tax if such inputs are returned after a period of 6 months from the date of enactment of GST whereas, manufacturers shall be liable to pay tax if such inputs are not returned within a period of 6 months from the date of enactment of GST.
For the benefits of the concerned provisions, manufacturer and job worker should declare the details of goods held in stock by job worker on behalf of the manufacturer.
PROVISIONS RELATING TO SUPPLEMENTARY INVOICE OR DEBIT NOTE OR CREDIT NOTE:
Contracts entered prior to enactment of GST and the price of goods or services if revised:
Upwards on or after the enactment of GST laws – Issuance of supplementary invoice or debit note. Downwards on or after the enactment of GST laws – Issuance of supplementary invoice or credit note.
WITHIN 30 DAYS FROM SUCH REVISION
PROVISIONS RELATED TO REVISION OF RETURN:
Returns furnished under the previous laws, are revised and any amount through such revision is found to be recoverable from the person, the same shall be recovered as “arrears”, amount thus recovered shall not be admissible as input tax credit under this act.
PROVISIONS RELATED TO PROGRESSIVE OR PERIODIC SUPPLY:
The tax shall NOT be payable for the supply of goods or service made after the enactment of GST if the consideration for said supply has been received prior to the enactment of GST law.
PROVISIONS RELATED TO RETENTION PAYMENTS:
The tax shall NOT be payable on the supply of goods or services made before the enactment of GST law & the part payment received after the enactment of the law, only if the tax on such supply has already been paid wholly under the previous law.
PROVISIONS REGARDING TDS:
Where the supplier has made any sale of goods related to which tax was deducted at source under the previous law and has also issued the invoice before the enactment of GST law,
No tax shall be deducted where the payment to the supplier is made on or after the enactment of GST law.
ANALYSIS: No TDS, if the sale of goods made in previous law and issued invoices before the enactment of GST law, but payment (maybe) after the enactment of GST law.