Taxpayers under the VAT regime can avail GST TRAN 1 transition form to avail input tax credit accrued on old stock purchased during the pre-GST period. While GST TRAN 1 is limited to only registered individuals under VAT, the GST TRAN 2 facilitates ITC claims on old stock owned by unregistered individuals during the pre-GST regime. A prerequisite though is that upon filing GST TRAN 1 or GST TRAN 2, the concerned old stock must be cleared.
While the introduction of GST comes with an opportunity to increase India’s Tax Base by an exponential margin, it also raises concern in the minds of the current Taxpayer base over ITC Claims on Old Stocks. Taxpayers would not prefer to lose out on outstanding tax benefits and input credits due to the erstwhile VAT regime.
These subsume a wide spectrum of tax rebates like taxes paid on the purchase of semi-finished goods, finished goods. raw materials, or materials dispersed to job workers. However, CBEC has tried to put all such concerns to rest under the new GST Regime.
The GST was projected as the simplest avatar of indirect tax structure. However, GSTN which is referred to as the technology backbone of the current tax structure has been constantly been affected by glitches. This has resulted in many previously registered as well as unregistered taxpayer failing to file GST TRAN1 and GST TRAN 2 forms leading to capital blockage and affecting business operations in the long terms.
GST TRAN-1 Form Eligible & Non-Eligible Entities with Due Dates
|Form type||Eligible Entities||Non-Eligible Entities||Revised Due Date of Filing|
|TRAN-1||GST Registered Individuals who were registered under the VAT regime too.||Those registered under GST as composition dealer||31st March 2020 (Read Notification)|
Letest Note : The CBIC recently notfied about the extension of due date of GST TRAN 1 under rule 117(1A) filing on the account of technical issues faced by the taxpayers on the portal. Now the due date has been revised of GST TRAN 1 till 31st March 2020.