The introduction of GST on 1st July 2017 was a bold move in the history of the Indian Taxation System. As per Economic Survey 2017-18, Demonetisation and the introduction of the Goods and Services Tax (GST) brought 1.8 million more people under the ambit of Income Tax. A large number of dealers who were previously unregistered are now registered under GST. The low turnover limit has brought these dealers under the GST radar.
Many among these newly registered dealers would have had a stock of inputs, semi-finished goods, or finished goods when GST came into force. Under GST, the dealers who cannot furnish bills/invoices for the tax paid on the inputs, need to file the TRAN-2 form.
But before filing Form TRAN-2, the dealer/trader must file Form TRAN-1 and GSTR-3B for the particular month. The TRAN-2 form has to be filed for every month during which such stock was sold till December 2017. Also, the taxpayer must ensure to cross-check the below points in order to escape any friction and errors in return filing.
- The stock did not comprise any zero-rated goods under Excise/VAT.
- This scheme is valid for 6 months only. The stock must have been cleared by the end of December. Only those stocks would be considered which were cleared out between July 1st and December 31st.
- You have a document that verifies the procurement of such goods.
- The stock of goods for credit that has been claimed must be stored at a single location for faster verification and easy identification.
Details to be Filled in TRAN -2
Before proceeding with the below steps, taxpayers must ensure that they have filled out the TRAN-1 Form and the GSTR-3B return for the relevant month. The taxpayer must log in to the GST Portal. Then in the Services tab, select transition forms. Now click on the TRAN-2 Tab and select the financial year and month.
The GSTIN and Legal/Tender name are auto-generated and filled. There would be two blue titles. These have to be manually filled by the taxpayer.
Details of inputs held on stock on 1st July for which you do not have any invoice/document evidencing payment of tax carried forward to electronic credit ledger.
Due Dates for Filing TRAN 2
All aggrieved taxpayers have been granted a one-time opportunity to file Form TRAN-1/TRAN-2 and claim their transitional input tax credit under GST. From 01.10.2022, GSTN has made the facility available for aggrieved taxpayers to file TRAN-1/ TRAN-2 or revise an earlier filed TRAN-1/TRAN-2 on the GST common portal in compliance with the Hon’ble court’s directive. As per the court’s instructions, aggrieved taxpayers will be able to do so until 30.11.2022.
Taxpayers can now file their forms TRAN-1/2 more easily and quickly through the enhanced TRAN filing process and intuitive user interface. The TRAN-1/2 has also been accompanied by a detailed advisory and a step-by-step, frame-by-frame guide for easy filing.
For detailed instructions and advice, click here.
In addition, it is recommended that you download the advisory and follow all the important points mentioned therein to make filing your return as simple as possible.
Latest Update in GST TRAN 2
- “A TRAN advisory has been issued for taxpayers from Daman and Diu & Ladakh.” read more
- “File and revise TRAN-1/TRAN-2 forms according to Supreme Court orders dated 22.07.2022 & 02.09.2022 in Union of India vs. Filco Trade Centre Pvt. Ltd.” Read PDF
- “Now taxpayers can manually modify form TRAN-1 and TRAN-2 under goods and services tax (GST), but how.” Click here