Transition form 2 is a form filed to avail the credit in electronic cash ledger for the eligible duties and taxes paid earlier undr pre GST regime. This form is filed by the registered taxpayers who registered from GST but were not registered under the old regime.TRAN 2 can be used to claim tax credit on the stock held by the taxpayers. The trader who does not have a VAT or excise invoice of the stock held on 30th June 2017 can fill this form.
| Form type | Who can file | Who cannot file |
|---|---|---|
| TRAN 1 | Person registered under GST, may be registered or unregistered under old regime | Persons registered under GST as composition dealer |
| TRAN 2 | Person Registered under GST but unregistered under old regime or a dealer or trader who does not have documentary proof of taxes or duties paid | Manufacturer registered under excise A service provider registered under service tax |
The taxpayers who can file TRAN 2 are as follows:
The taxpayers who cannot file TRAN 2 are as follows:
Form TRAN 2 has to be filed at the end of every month when the stock is sold. This form is required for reporting the details while claiming input tax credit by the trader or dealer.
However, TRAN-2 is extended for certain taxpayers to 31st April 2019. Earlier it was extended from 31st March to 30th june 2018.
To fill Form TRAN 2 the individual must abide by few conditions. They are as follows:
The percentage of ITC claim available on the goods held before the appointed date is as follows. It depends upon the rate of GST on goods.
| Output Tax | Output Tax Rate | ITC available |
|---|---|---|
| SGST+CGST | Greater than or equal to 18% | 60% |
| SGST+CGST | Less than 18% | 40% |
| IGST | Greater than or equal to 18% | 30% |
| IGST | Less than 18% | 20% |
For example- Ram holds 500 units of bags on 30th June Now on 10th July he sells 500 units of bags for Rs. 50000 on which rate of IGST is applicable at 18% Taxable value = Rs. 50000 Tax amount = Rs. 9000 Since the rate of IGST is more than equal to 18% ITC will be allowed at 30% so the ITC allowed will be 30% of Rs. 9000 i.e Rs. 2700.
Filing of TRAN 2 form needs to be done by following these steps:
While filing the TRAN 2 form mention the details of inputs held on stock for which there is no supporting documents evidencing payment of taxes. However the details like GSTIN, legal name, trade name will be auto generated. You need to click on “Add details” and after adding the details in mandatory fields click on “Save”.
TRAN 2 can only be filed after the submission of TRAN 1 and GSTR 3B. TRAN 2 cannot be filed otherwise.
No documents are required to be attached with TRAN 2.
No, once TRAN 2 is filed and submitted it cannot be amended. It is filed only once in a tax period.
You cannot file GST Tran-2 if you have not already submitted
You can add new stock details HSN line items in Form GST TRAN 2, in all applicable tax periods. In case you have missed adding any HSN line item details in previous month Form GST TRAN -2, as you had not sold /supplied these items in that month, you can add these HSN line item details in next month by clicking on “ADD DETAILS” button. However, as per law you can add only those HSN line items which you have already declared in your furnished Form GST TRAN 1.
Yes one can file GST TRAN 2 after preparing through offline tool available for central tax and state tax.
One can delete only those records which have been added in the same tax period and Form GST TRAN 2 is yet to be filed for the said tax period. Records of previous tax period cannot be deleted.
