Rules and conditions of Form GST TRAN 1 and TRAN 2 - H&R Block| Blog
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September 22, 2017
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Rules and conditions of Form GST TRAN 1 and TRAN 2

Any business that has not availed Input Tax Credit (ITC) on services or a closing stock can claim credit of tax paid under the pre-GST regime, irrespective of whether they are registered or unregistered under this regime. Depending on the possession of the evidence of payment of taxes and being registered under the pre-GST regime, Form Tran 1 and Tran 2 are to be filed.

In order to claim ITC (Input Tax Credit), you will have to submit your input tax credits according to the previous tax regime and then claim it under GST. For that, you will have to file your Tran 1 and/or Tran 2 form within 90 days from the appointed date and sell your old stock which you are planning to carry forward to the subsequent i.e. GST tax regime within six months from the appointed date (i.e. 1st July 2017).

Check your eligibility for the Transition Forms you need to file

Form TRAN 1 Form TRAN 2
  • It needs to be filed by every person who has closing stock under the GST regime, even if they were not registered under the pre-GST regime.
  • Not a registered person under any pre-GST regime.
  • Holds Closing stock on the appointed date (i.e. 1st July 2017)
  • The person doesn’t possess any document that acts as an evidence of payment of taxes.
  • The person is not a manufacturer in Central Excise.
  • The person is not a service provider under the Service Tax.

 

Form GST Tran 1

Rules

  1. Every person who is registered under the GST regime and wishes to claim the tax credit of ITC available under the pre-GST regime must file the Form Tran 1 within ninety days of the appointed date.
  2. This form should be filed by every person who is registered under GST regime, even if he is not registered under the pre-GST regime if he wants to take credit of ITC available under the pre-GST regime.
  3. If a registered person has purchased capital goods and was unable to claim the full amount of tax paid during the purchase, the remaining amount can be claimed under GST.

 

Conditions to claim ITC

  1. A registered person can be a manufacturer or a provider of the exempted goods and/or services, works contractors availing abatement under 26/2012-ST, first or second stage dealer, a registered importer, depot of a manufacturer, or a person who is currently not liable for registration.
  2. The registered person shall be entitled to take in the inputs in finished goods held in the stock on the appointed day, inputs on the semi-finished goods, ECL, eligible credits on inputs.
  3. The entitlement in case of finished goods will be subject to the following conditions:
  • The stock is to be used for making supplies that are taxable under this Act
  • The person is eligible to take ITC on inputs under this Act
  • The person should have the invoice or the prescribed documents
  • These documents or invoices should not have been issued earlier than 12 months from 1st July
  • The supplier of the service is not eligible for abatement under this Act

 

Form GST Tran 2

The person who satisfies all the following conditions must file Form Tran 2

  1. The person aiming to claim the ITC should be registered under GST but should not be registered under any pre-GST regime.
  2. The person should not possess any invoice or other documents that act as an evidence of payment of taxes.
  3. The person should neither be a manufacturer nor a supplier of services under Central Excise or Service Tax respectively.
  4. The closing stock should be lying on 30th June 2017.

If the person wants to claim credit of State and Central Tax, following conditions should be fulfilled

  1. The state and central tax have been paid on supplies.
  2. The goods are not Nil rated or fully exempt from Excise Duty or under the State VAT Act.
  3. The registered person should have the document for procurement of these goods.
  4. The registered person should easily identify the stock of goods on which credit is allowed, which is why it should be stored in that way.
  5. The amount allowed should be credited to the ECL (Electronic Credit Ledger).

The above conditions in case of State Tax will be applicable if the States offer Tax on the MRP Scheme.

Latest Update:

  • The deadline for first GST Return, GSTR- 3B, has been extended to August 28 for taxpayers who opt to use the opening balance of pre-GST credit in the current month. Those who do not wish to claim opening credit in the current month or those who have no credit; the deadline continues to be August 20.
  • The extended deadline also allows the taxpayers to file form TRAN 1 by October 31.
  • TRAN 1 filing system is not up and running yet on GST portal.

Have you Filed your GST Returns Yet?

Our experts at H&R Block can help you file all your GST returns and help you with GST compliance. Get your GST returns filed now!

Ankita Mathur
Ankita Mathur
Ankita is a CA by qualification and works as a tax advisor at H&R Block. She specializes in matters of India & US individual taxes. Her job involves helping people understand their taxes in the most simplified ways and giving them sound advise on saving taxes.

94 Comments

  1. manish says:

    Is it mandotary to file trans 1 & trans 2 , even if one does’t claim any itc credit on stock of goods carried forward in GST

  2. gulshan kumar ajmani says:

    One needs file Trans 1 or 2 as the case may be only if he wishes to avail benefit of input credit lying as on 1.7.2017. If one does not file such return, he will simply not get the benefit that he any way does not wish to avail.

  3. subhash. says:

    Can I claim any ITC if payment of admk
    d

  4. Ankit says:

    Why access denied message generate when i logged in?
    I got a mail from gst.gov.in about mismatch during PAN validation.
    Plz fix this issue

  5. Latchmi N says:

    Client has closing stock in hand as on 30th June 2017 .. He is also having ITC under Vat as on 30/06/2017..For claiming ITC available ,we will file tran 1, on closing stock want to claim ITC, KINDLY clarify whether to file tran 1 or tran 2 for closing stock ITc reimbursement and pathway in gst portal for tran 1

    Thank u

  6. Parth Jalan says:

    Can tran-1 be filed at a later date. I do not wish to claim the credit for the month of July but aim to do so for the month of august. Can I file tran-1 after august 28th ??

  7. Ashok D Nichani says:

    Hi!

    I have 2 queries:

    1. Will I be able to claim the ITC for purchases made in July 2017 for the tax liability in July 2017 in GSTR-3B? If so, kindly guide me with the procedure for the same. If not, am I supposed to pay the entire amount due up-front by creating a challan to credit the Electronic Cash Ledger?

    2. Can I file the Tran-1 form before September 30, 2017 and claim the credit for the same in the returns filed for any of the subsequent months?

    Thanks in advance.

    • HRBlockIndia HRBlockIndia says:

      Hi,
      Lets provide the answer in the same order:
      1. ITC(GST) for purchases made in the month of July 2017 can be utilised against the liability for the month of July 2017.
      2. Last date of filing TRAN 01 is 90 days after the appointed date (i.e. 1st July). So TRAN 01 can be filed within the said time as prescribed by the law.

  8. Shivani Lad says:

    How much time we can filed Tran-1 and Tran – 2 of one specific period

  9. dharike says:

    i am the export party input 150154 i am not claimed refund so tran 1 fullfiil the amount tran form 1

  10. prakash says:

    I can not Find TRAN 1 or TRAN 2 in the GST Portal
    Hoe To Fill the Forms

  11. Girish says:

    I have stock of some 4 lacs value. I have registered under GST but I was not registered under any pre-GST regime. Can I declare my stock. If yes, where and when I should declare. If not, how should I sell my stock.

  12. Jitendra Singh says:

    Hi,
    I’m a Brick Kiln Owner (Bhattha) registered under UP-VAT Law and i had taken compound scheme under UP Government Law, in process of making brick i brought coal from Gujarat and paid 5% CST (with Form-38 Issued from VAT office under compound scheme) also purchased coal from Intra state (Local UP) paid 4% VAT from January 2017 to June 17, i have all invoice with me, can i avail this purchase as ITC in GST?
    After that i have finished Bricks in stock which i am taking into GST regime worth 70-80 lakh (approx 20 Lakh Brick such as price is not stable ever for bricks) so can i avail credit of ITC for Brick in stock also ?

    Please advice…. and i appreciate.
    8953620028

    • HRBlockIndia HRBlockIndia says:

      You can avail the ITC subject to certain conditions as specified under the law. Also please confirm whether you are registered in GST as a composite taxable person. If that is the case then you cannot avail such credit.

  13. abhishek says:

    can i claim itc on service tax paid on franchise amount in November 2016?

  14. yamini says:

    Kindly help . while filling Form TRANS 1 we had wrongly filled it left few columns by mistake . how do i rectify sir ,

  15. kajal maheshwari says:

    If a person registered under old regime and also registered under GST and Such a person does not have a excise invoice for stocks held by them on 30th June 2017. which form either TRAN 1 or TRAN 2 applicable or both forms applicable ?.

  16. ashwin says:

    I have two questions.

    1) I have started new business in july month and registered with GST in july only. Now i don’t have any goods lying in stock on 01.07.2017, so TRAN-1 is not required to be filed by me. That’s what i can understand. Please correct me if i am wrong. Now during my purchases for business set up i am having invoice for the month of june where VAT credit is mentioned. How can i avail VAT credit for those goods. Do still i need to file Tran-1. One more point, all the goods have been billed in june but received in july.

    2) How can i claim my ITC on machinery purchased for my business. ?

    • HRBlockIndia HRBlockIndia says:

      Please find the answer in the similar order as the question:
      1. You cannot avail the credit for VAT as your business itself has incorporated in the month of July.
      2. Report the same into your returns and confirm whether all conditions for availing credit are satisfied or not.

  17. Goutam says:

    How to edit TRAN-1 after Submitting it in case of local ITC ?

  18. Satish says:

    I have closing stock at 30.6.17 and in some invoices shown excise duty separate and in some invoices excise duty not shown separate than how I claim ITC of Excise duty in CGST?

  19. SUNIL says:

    we have filed trans 1 but it not shown in GSTR 3B HOW CAN WE ADJUST OUR LIABILITIES WITH TRANS 1 ITC

  20. OM JANGID says:

    Client has closing stock in hand as on 30th June 2017 .. He is also having ITC under Vat as on 30/06/2017..For claiming ITC available ,we will file tran 1, on closing stock want to claim ITC, KINDLY clarify whether to file tran 1 or tran 2 for closing stock ITc reimbursement and pathway in gst portal for tran 1

    Thank u

  21. DAISY says:

    i have vat ITC
    only which columns i will filled in TRANS 1 FORM

  22. sachin says:

    whether it is compulsory to fill forms detail if I am not Taking any transition credit of VAT but Taking credit of Cenvat, what if still some forms are pending and no vat credit available

  23. shyam khodecha says:

    What is the number that should be filled in 7(c) section of trans-1?

  24. SUNIL says:

    Dear sir / Madam, In the first template of TRAN 1 error message is show after submitting the CENVAT CREDIT as to processed with error.We have certain input on goods as on 30.06.17 which we filled in template 5 (a) and submitted. but its not shown in the credit ledger . please advice how can we filed the return thanks in advance

  25. slp says:

    Kindly help . while filling Form TRANS 1 we had wrongly filled it left few columns by mistake . how do i rectify sir

  26. PANKAJ says:

    I have filed TRAN-1 But some mistake is happen so i would like to correct it. Pl. guide how to correct it ?

  27. Anish Todarwal says:

    I am a reseller with only vat billing. The manufacturer is asking me to file trans 1 or 2 as per closing stock on 30.06.2017 to give me part of the difference amount to clear the loss that we are incuring due to tax rate changes. But as I dont have any ITC to claim, can I file TRANS1

  28. Tejas Panwala says:

    We have submitted Trans 1but missed out 1 entry under 7(A) how can it be rectified.

  29. Puneet says:

    I’ve closed closing stock. I purchased this stock from other state on C form and some part without c form by paying full VAT of other state.

    Do I need to file trans 1 form ?

    Please help me by answering this question

  30. Ravi Taparia says:

    Can Trans 1 be filed in Sep month, if I wish to take credit of closing stock later ?
    The GSTR-3 B has already been filed for the month of July’17.

  31. soniya says:

    can trans 1 can be revised

  32. UMESH PAUL says:

    Sir I just fill the trans 1 wrongly rs. 1460423 instead of 14604423 for itc claim on Saturday but not submitted and also digital signature do not use. But on Monday it is showing submitted and the Gst site does not allow us to modify the trans 1. Please guide us how can I cancel it and correct trans can be submitted or guide us how balance itc can be claimed. Please please give me any way otherwise my all futures will be lost as I am an employee and all my carrier will be finished. So please help me.

  33. Bass says:

    I’ve registered under Pre & Post GST regime as well.
    I have imported goods from other country in 1st week of June,2016.

    1. Whether I need to file TRAN-1?
    2. When is the last date to claim ITC? (in this case)
    3. ITC applicable in this case?

    Thanks

  34. SUBRATA GANGULY says:

    I have submitted trans-1 but inadvertantly credit carry forwarded short shown in 5 (a), missed out 7 (a), 7 (b) & 9 (b). How can I rectify it. Please guide me and help me to rectify it.

  35. Shelu says:

    IS THEIR ANY POSSIBILITY OF CORRECTING TRANS 1 FORM AS WE HAVEN’T TAKEN CREDIT OF FEW ITEMS?

  36. SUBRATA GANGULY says:

    I have submitted & filed trans-1 but missed out 7 (a), 7 (b). Is there any provision to rectify it. Please help me with proper solution.

  37. UMESH PAUL says:

    Please reply

  38. shankar lal acharya says:

    I have to collect 40% of Central Declaration Forms/ E-1 forms from out station party, if i file Trans-1 form now , may i would be able to file Trans-1 form in next time, Return under GST 3B can be filed before filing Trans-1.

  39. shankar lal acharya says:

    C FORMS – FORM -F, & FORM -H, MENTIONED IN TRANS-1 RETURN, BUR FOR FORM E-1, NOT MENTIONED IN TRANS-1 RETURN, DUE & DIFFERENTIAL TAX BE MENTIONED AGAINST FIRST 3 STATUTORY FORMS [ C, F, H ], BUT WHERE TO MAKE ENTRIES FOR FORM E-1 [ SUBSEQUENT SALES UNDER E-1], WHICH ARE DUE TO BE COLLECTED FROM SUPPLIERS.

  40. M K JALAN says:

    SIR,
    WE WERE FIRST STAGE DEALER AND HOLDING EXCISE PAID STOCK AS ON 30.06.2017.WE ALSO HAVE DUTY PAID INVOICES OF SUCH CLOSING STOCK.ALL OUR PURCHASE WAS INTERSTATE HENCE NO ANY CARRYFORWARD INPUT VAT CREDIT.

    PLEASE ADVICE WHERE TO SHOW ABOVE STOCK IN TRANS 1 AND ALSO ADVICE WHETHER WE HAVE TO SHOW THOSE C FORMS WHICH ARE NOT YET COLLECTED FROM BUYERS.

  41. vinayak says:

    In tran 1 return shows message Processed with Error how to rectify the errors after file the service tax return Rs 51000 credit shows in our accounts and same credit taken in tran 1 return

    errors shows Processed with Error

    • shubham patel says:

      For those , who have filed Tran-1and it shows Processed with error , do you have an IEC code i.e do you import or export ??

  42. sateesh n says:

    Sir,

    I have filled Tran-1 for ITC , but when i filled GSTR3B error says Tran-1 not filed.
    please guide how to rectify this error.

  43. Hiral Dholakia says:

    SIR,
    WE WERE FIRST STAGE DEALER AND HOLDING FEW EXCISE PAID STOCK AS ON 30.06.2017.WE ALSO HAVE DUTY PAID INVOICES OF SUCH CLOSING STOCK.ALL OUR PURCHASE WAS LOCAL PURCHASE AND WE HAVE UTILISED INPUT VAT CREDIT ALREADY IN PRE GST ERA.

    PLEASE ADVICE IF ONLY 7A OF TRANS 1 HAS TO BE FILLED OR 7C ALSO HAS TO BE FILLED

  44. Amir Chhipa says:

    SIr
    I Have Closing Stock On 1 july 2017 of cotton Gery Fabric But In Invoice No Excise Duty Mention. Please Suggest Me How To Declare Sock In GST in Which Form & What Are Time limit and Is there Is Any ITC Available . ( In state law earlier Cotton grey Fabric is exempted

  45. JEYADEV says:

    Im a trader registered under VAT regime and now under GST too. I hav paid VAT for June 2017and I hold stocks too.All my purchases are from
    registered dealers only. Now please clarify which TRAN 1 form should i submit.? Is it 7a, 7b?

  46. ASHOK KUMAR GOYAL says:

    ट्रांस फामॅ भरने के बाद हम कब तक इनपुट क्रेडिट ले सकते हैं ।

  47. Atul Jain says:

    where to write stock of cloth that was untaxed prior gst now taxable in gst at 5%

  48. RUPALI says:

    IF I HAVE FILED REVISED VAT RETURN FOR 16-17 & FIRST QUARTER OF 17-18 THEN CAN I FILE TRAN-1 TO GET VAT CREDIT IN GST

  49. K.M.SUBRAMAIAN says:

    I have excess input tax for the month of June-2017(VAT System) and i claimed the amount in TRANS 1 and submitted. But the amount was not reflected in My Credit Ledger. When I verified TRANS 1, the status shows ” PROCESSED WITH ERROR. and at the top, a message shows that” INVOICES PENDING AND THIS WLL BE ADDED AFTER VALIDATION.

    Is it a system error? . what I have to do to get Credit of the above amount in my Credit Ledger.
    kindly help us.

  50. santbir singh says:

    sir, we have old input credit in service tax before 30.06.2016. but Trans-1, form accept only 12 months only.
    please advice what we will do it.

    thnaks

    santbir singh

  51. Saravanakumar says:

    Is TRANS-1 Return revision is accepted at one time ? any notification received , Please share

  52. sindhu says:

    When we will get Tran-1 Revised Option

  53. Sudheer says:

    of the following Duties which are all eligible for claim under TRAN 1?

    a. Basic Exice Duty (BED)
    b. NCCD
    c. Additional Surcharge

    please suggest.

  54. R.stalin says:

    Sir last two return I am not filled service tax return but I have ITC. How can I claim in gst

  55. R.stalin says:

    Sir I have excise duty in 20.09.16 . now I open gst account can I claim exercise duty ?

  56. Raju Sreerekha says:

    What is the due date for filing Tran1?
    We had input credit as on 30.06.17 under service tax and applied for service tax Refund on 06.09.17. Please tell us whether we need to file Tran 1 or NOT?
    Thanks

  57. Abhishek Singh says:

    Hi,,
    please suggest me i have some advance payment in service tax in the month of august 2017 ,now i dont have any liablities to adjust this advance fund so i want to adjust this advance fund with CGST.

    Now please advise how to claim this excess payment of service tax under GST.

  58. jitendra r dadiya says:

    i have submission tran- 1 but not filled it so my aug-17 because digital sign is not uploaded so aug-17 gstr3b return in not upload the error is ===> you have submitted tran-1 form but have not filed it,you are requested to file the same before submitting this return.please give this error solution

  59. Rahul Goel says:

    Hello Regarding Transitional Credit (ITC) of closing stock as on 30-June-2017. Which TILE/TILES in the transitional form should I fill up…following are the details. 1. I am registered dealer under GST. 2.I want to claim ITC (transitional) only on the stock I have on 30-June-2017…no other ITC what-so-ever..”only on closing stock on 30.06.17″ 3. I have complete invoices of all the stock items (as on 30.06.2017) and all of them are within 1 year period…and all of them are charged with 12.5% excise. 4. All the stock items as on 30.06.2017 are interstate purchases….no within state purchase. 5. I have evaluated all the stock items in the proper ratio as per the excise charged on them. Pls tell me where and how to enter the details…Thank you very much.

    • Srikanta says:

      This is easy, if you have the 12.5% Excise paid invoices with you, find out the stock as on 30.06.17 and find out the relevant invoices for the stocks.
      Calculate the ED on the same stock.

  60. Srikanta says:

    I have filed the TRAN-1 > 7(a) Without Documents. Now trying to update the TRAN2 But the it is disabled. Pls help me to resolve this issue.

  61. augustine says:

    Please let me know whether I can claim ITC ( through TRAN-1) on closing stock for the products which were rated NIL Tax under VAT regime.
    For example Fertilisers & Pesticides in Punjab State.

  62. KAVITA says:

    1) whats the purpose to fill TRAN-1??
    2) How many months credit is taken???
    3) what are the detailes to fill ???
    4)receive 100% credit in which case??
    5)when TRAN-2 is fiied???

    • SHIVAM says:

      1) TO CARRY FORWARD ITC OF PREVIOUS TAX REGISTRATION. i.e SERVICE TAX, VAT ETC.
      2) TILL JUNE 2016.
      3) ITC AND STOCK.
      4) IF YOU FILLED YOUR LAST RETURN THEN YOU CAN RECEIVE 100% CREDIT.
      5) NA.

  63. Karva Chauth 2017 says:

    It’s hard to find knowledgeable people about this subject, however, you sound like you know
    what you’re talking about! Thanks

  64. sreelatha says:

    I have submitted TRAN 1, and while filing this showing error as follows: Please submit before filing:However i had already submitted this.
    Please resolve as i have to file GSTR 3B for August and i am not able to file because of non filing of TRAN 1

  65. Kundan Kanchan says:

    I am service provider.I purchased car in 12.08.2017 & paid VAT 85,000/-. Can I fill Trans 1 for availing ITC.

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