What is Credit Transfer Document (CTD) Under GST?

What is the meaning of Credit Transfer Document in GST?

Credit transfer document is an evidence of payment of duty of excise on goods manufactured and cleared by him before the applicability of GST.

A Credit Transfer Document (CTD) is a form issued by a manufacturer as proof of Excise Duty payment on goods manufactured and cleared before July 1. These goods must be cleared to a person who isn’t registered under the Central Excise Act but is a registered trader under GST.

The requirement of Credit Transfer document will arise when:

• A manufacturer who was registered under Central Excise Act,1944
• Paid excise duty
• On goods manufactured and cleared by him
• Before GST came into force
• And gets registered under GST

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What are the contents of Credit Transfer Document ?

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What are the conditions to issue Credit Transfer Document by the manufacturer?

• The value of goods for which CTD is issued shall be more than Rs. 25,000/- per piece.
• Such goods shall bear the brand name of manufacturer.
• Following documents shall be available with the manufacturer for verification
  1. Records related to clearance of goods
  2. Records related to payment of duty on such goods
• The dealer to whom Credit Transfer Document issued must have in possession of such goods without any change in the form of goods.
• Credit transfer document is required to be issued within 30 days of the appointed date.
• CTD shall not be issued in favour of a dealer to whom invoice was issued for the same goods before the appointed date.
• At the time of supply of such goods, dealer should mention corresponding CTD number on the invoice.

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What are the duties of the Trader in respect of CTD?

The Trader shall have the following duties in respect of CTD

• Dealer shall make available records maintained in TRAN 3B to Central Excise Officer on demand.
• The dealer shall keep safe all the invoices and documents vouching details of purchase and sale including those from intermediaries, for which credit is being availed.
• For availing the credit the dealer shall submit particulars online in FormTRAN 3 within 60 days.
• For the goods on which dealer has taken credit, corresponding CTD number shall be mentioned on the invoice further issued by him
• No credit shall be available to the dealer on manufacture of identical goods which are purchased from manufacturer and is available in dealer's stock.

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Which documents are required to be maintained & furnished by the dealer & manufacturer ?

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What are the liabilities of the manufacturer issuing CTD?

The manufacturer issuing credit transfer document shall take into consideration the following factors while making such issue

• Make sure that the dealer is in possession of goods in the same form as originally cleared by him.
• In case the invoice has been issued before the appointed date, no further CTD shall be issued to such dealer
• Manufacturer shall be jointly and severally liable in case credit is availed twice by the dealer
• CTD shall have copies of invoices annexed to it
• The CTD records maintained in TRAN 3A shall, on demand be made available to the Central Excise officer for verification.
• CTD shall be issued within 30 days of the appointed date
• The details pertaining to CTD issues shall be furnished within 60 Days in form TRAN 3

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What are the consequences of availing credit twice on the same goods?

For availing the credit the dealer needs CTD (credit transfer document) from the manufacturer. In case credit is availed twice by the dealer then, the responsibility of the same would be casted jointly and severally on dealer and manufacturer. They shall be responsible for any excess credit availed and provisions under CENVAT Credit Rules, 2004 in respect of

• Recovery
• Interest and
• Penalty

Shall be equally attracted on such dealer and manufacturer.

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