GST TRAN-1: How to File GST TRAN-1 on GST Portal?

At the time of implementation of GST the taxpayers were already having closing stocks on which taxes were paid under old taxation system. To facilitate the credit of such input tax credit and avoid double taxation form TRAN 1 was introduced. The details of closing stock held on 1st July 2017 needs to be furnished in TRAN-1. Let's discuss the details regarding GST TRAN-1 in detail.

Latest Updates

In the recent High Court decision those who forgot to claim or made incorrect claim for carry forward of tax credit till 27 December 2017, can still submit their claims to the government till 30th November 2019.

What is GST TRAN 1 form?

GST TRAN 1 is required to be filed by taxpayers for submitting claim of input tax credit lying on closing stock dt. 01 July 2017. By submitting this form the taxes already paid under VAT, Service Tax, Excise etc can be claimed under GST and credit is transferred to electronic credit ledger of the taxpayer.

What is the due date of filing TRAN 1?

The due date of filing TRAN 1 was 27th December 2017.
An extension of date was announced on 10th september 2018. The taxpayer who could not complete their filing due to technical reasons can file their TRAN 1 by 31st march 2019.
After an order from punjab and haryana high court TRAN 1 form could be filed till 30th November 2019.

What are the details required to be reported in TRAN 1?

Various details are to be reported in TRAN 1. They are as follows:

  • Input Tax Credit of the old regime that needs to be claimed.
  • Avoid any disruption to material sent to job workers
  • Agent principal dealing and dispatch of goods
  • Works contracts

Who can file TRAN 1?

The form TRAN 1 can be filed by any registered Person under the new GST laws. They are the individuals who were registered under the old laws of indirect tax as well. The point to be noted is registered person under GST, may be registered or unregistered under old regime of taxation.

Who cannot file TRAN 1?

Those taxpayers who are registering under GST as composition dealer cannot file TRAN 1.

There are various regulations related to TRAN 1 to be followed by the taxpayer. They are as follows:

  • Every taxpayer who is registered under the new GST regime and wants to claim the tax credit of Input Tax Credit that was available under the pre-GST regime must fill the Form TRAN 1 by 30th November 2019.
  • This form should be filed by every person who is registered under new GST regime and wants to claim Input Tax Credit, even if he or she was not registered under the pre-GST regime.
  • If a registered person was unable to claim the full amount of tax paid during the time of purchase of capital goods the remaining amount can be claimed under GST through this TRAN 1.

There are numerous conditions to be kept in mind while filing TRAN 1 by a registered person under the GST Laws. These important aspects are:

  • All persons who falls under the provision of Section 141 or Section 142(14) shall submit a declaration electronically in FORM GST TRAN 1.
  • Such declaration should be made within ninety days of the appointed day.
  • The input credit is eligible for tax credits under the laws of GST.
  • Taxpayers registered as Composite dealers are not eligible to file TRAN 1.
  • Taxes paid under state taxes such as VAT will be carried forward as SGST.
  • Taxes paid under central taxes as Excise, Service tax will be eligible as tax credit as CGST.
  • This declaration should have the details regarding stock of inputs, finished goods, semi finished goods as applicable held by the person on the appointed day.
  • For each unique GSTINs, person should file different TRAN forms.
  • If the taxpayer has duly filed returns of past six months for VAT or Service Tax or Excise, then only he or she is eligible to avail tax credits.
  • Any credit that is to be claimed from old laws must be eligible credit under GST laws also.

What is the procedure to File GST TRAN 1?

The step-by-step procedure to file TRAN-1 is:

  • Fill the columns in the form with actual details of the business for which you are claiming tax credit. The details to be filed are GSTIN, registered person’s legal name and trade name.
  • Ensure that you have filed the important returns of VAT, Excise, Service Tax for past 6 months.
  • Specify the amount of tax credit you want to claim.

    Under this there are three sections where you have to provide the details :

    1. Details regarding central taxes paid such as excise or service tax are to be specified here. Amount that is to be claimed as ITC in GST is to be mentioned.
    2. Details of C-form, F-forms and H-forms are to be mentioned here by the persons who are registered under VAT and CST. Details such as TIN of issuer, name of issuer, serial number of Form, amount and VAT rate to be furnished.
    3. Here details of VAT registration number, and amount of ITC is to be furnished.
  • registered persons who claim tax credits in different scenarios should enter details here. Different scenarios are:
    1. dealing in exempted goods under excise
    2. exempted services under service tax
    3. claim credit of inputs held in stock, for Job worker and Principals,
    4. claim credit of inputs for agents registered under VAT who have held goods on behalf of Principal, etc.
  • Once all the details of the form are filled with details, it can be finalised through OTP submission or through digital signature.

Note: No rectification is allowed once it has been submitted by the taxpayer.

In what conditions Input Tax Credit can be claimed?

  • Person who wants to claim ITC should be a registered person who can be
    1. Manufacturer,
    2. Provider of exempted goods or services
    3. Works contractors availing abatement under 26/2012-ST
    4. First or second stage dealer
    5. Registered importer
    6. Depot of a manufacturer
    7. Person not liable for registration
  • The registered person shall be entitled to take
    1. inputs of finished goods held in the stock on the day of appointment,
    2. inputs of the semi-finished goods,
    3. ECL,
    4. eligible credits on inputs
  • The entitlement in case of finished goods will have the following conditions:
    1. The stock of raw material should be those supplies that are taxable under this Act.
    2. The person applying should be eligible to take Input Tax Credits on inputs under this Act.
    3. The supplier of the service is not eligible for dropping down under this Act.
    4. The person should have all the documents required with the invoice.
    5. These documents or invoices furnished should not be issued earlier than 12 months from 1st July.

Frequently Asked Questions

Q- Is revision of Tran 1 possible?

The amendment of details of TRAN 1 is not permitted once the filing is done by the taxpayers.

Q- What happens if Tran 1 is not filed?

If one does not file GST TRAN 1, he or she can not claim tax credit on input or finished goods that are held on the date of migration.

Q- Do I need to attach any document along with Form GST TRAN 1?

There is no requirement for uploading documents along with Form GST TRAN 1

Q- What will happen when transition form GST TRAN 1 is filed?

When Form GST TRAN 1 is filed ARN is generated and transition credit will be credited to electronic credit ledger of GSTIN mentioned in form.

Q- Is a person registered as composition taxpayers need to submit TRAN 1 Form?

Transition form is not required to be submitted by a person registered as composition taxpayer.

CA Abhishek Soni
CA Abhishek Soni

Abhishek Soni is a Chartered Accountant by profession & entrepreneur by passion. He is the co-founder & CEO of Tax2win is amongst the top 25 emerging startups of Asia and authorized ERI by the Income Tax Department. In the past, he worked in EY and comes with wide industry experience from telecom, retail to manufacturing to entertainment where he has handled various national and international assignments.