GST Transition

Every business is required to make the transition to the new laws under GST as we get closer to the appointed day. Taxpayers already registered under VAT/Service tax also need to register under GST. Each entity registered under the previous indirect tax laws shall get a certificate of registration on the provisional basis.

This certificate issued would be valid for a period of 6 months. Businesses having a turnover of more than Rs 20 Lakhs have to get registered mandatorily under GST. Small businesses can either opt for composition scheme or they can get voluntarily registered under GST.

All invoices have to be uploaded online, according to the GST Law. The process of deduction, payment, and refund of indirect taxes under GST would be carried out electronically. We provides services relating to smooth GST Transition.

Transition of Input Tax Credit

Input tax credit claimed in the return filed under previous laws for the period prior to the appointed day (1 July 2017) would be transferred to the electronic credit ledger. Existing manufacturers/dealers can claim the CENVAT credit in respect of input held in stock, semi-finished or finished goods held in stock if the following conditions are satisfied-:

• Such inputs and/or goods are used or intended to be used for making taxable supplies under GST;
• The said taxable person passes on the benefit of such credit by way of reduced prices to the recipient;
• The said taxable person is eligible for input tax credit on such inputs under GST;
• The said taxable person is in possession of invoices and/or other prescribed documents evidencing payment of duty under the earlier the law in respect of such inputs;
• Such invoices and/or other prescribed documents were issued not earlier than twelve months immediately preceding the appointed day;
• The supplier of services is not eligible for any abatement under GST.

Input tax credit can be claimed by the manufacturer/dealer only for those goods received after the appointed day, the tax on which has already been paid under previous law. Above credits would only be allowed if the invoice/tax paying document is recorded in the accounts of such person within thirty days of the appointed day. We provides services relating to filing of Form GST TRAN-1 within 90 days from the appointed date for taking credit of input tax on goods held in stock on the appointed date.