GSTR TRAN 1
This query is : Resolved
27 August 2017
In past I am registered only under Maharashtra VAT Act and CST Act. So I take the input of VAT as per my Last Return i.e. June 2017.But now I have to take credit of Excise for my inputs as I have some Invoices which have separate Excise Duty Amt (i.e. Duty Paid Invoices ) and some Invoices have no separate Excise Amt.How can I claim ITC of such Duties in TRAN-1 ?
27 August 2017
You can claim ITC of only those duties which are specifically mentioned in Invoice. If any duty is not mentioned in Invoice then that duty can not be claimed as ITC by filing form GSR TRAN1.
27 August 2017
what about the 60% condition ?
28 August 2017
Yes, a trader can avail ITC if he doesnot have documents but only after payment of duties under GST. Means only after selling goods under GST.
60% of Taxes paid can be availed only when rate of CGST and SGST or IGST is 18% or more, otherwise 40% is allowed.
But make sure you have paid the taxes and it is allowed only for Traders.
60% of Taxes paid can be availed only when rate of CGST and SGST or IGST is 18% or more, otherwise 40% is allowed.
But make sure you have paid the taxes and it is allowed only for Traders.
28 August 2017
Can u please explain me the prodecure for availing that ITC ?
27 July 2024
Certainly! Claiming Input Tax Credit (ITC) for Excise Duty under the GST regime can be a bit complex, especially if you're transitioning from VAT and CST to GST. Here’s a step-by-step guide on how to claim ITC on Excise Duties and how to navigate the 60% condition:
### **1. Understanding the Eligibility for ITC**
#### **a. ITC on Excise Duty**
Under GST, ITC on Excise Duty is applicable to:
- **Excise Duty on Inputs**: This includes duty paid on inputs that are used in the manufacturing of goods.
- **Excise Duty on Capital Goods**: Duty paid on capital goods used in the business.
**Key Points**:
- **Document Requirement**: ITC can only be claimed on duties explicitly mentioned in the invoice. If the Excise Duty is not separately mentioned in the invoice, you generally cannot claim ITC for it.
- **Transition from VAT/CST**: If you were registered under the VAT/CST Act and now transitioning to GST, you can claim ITC on stock as of the GST implementation date if you have valid documentation.
#### **b. 60% / 40% Rule for Traders**
For traders dealing in goods, a special provision allows them to claim ITC even without proper documentation (if they have not received any tax invoices) under certain conditions:
- **60% ITC**: Allowed if the rate of CGST/SGST or IGST is 18% or more.
- **40% ITC**: Allowed if the rate of CGST/SGST or IGST is less than 18%.
**Conditions**:
- You must have paid GST on the outward supply.
- This provision is available for traders who are not manufacturers or service providers.
### **2. Procedure for Claiming ITC**
#### **a. Filing TRAN-1**
For claiming ITC of Excise Duty (or VAT/CST) through TRAN-1:
1. **Log in to GST Portal**:
- Go to the GST portal and log in with your credentials.
2. **Navigate to TRAN-1**:
- Go to **Returns > TRAN-1**.
3. **Fill in Details**:
- **Part A**: Input Tax Credit of Excise Duty and VAT.
- Enter details of Excise Duty paid on inputs and capital goods as per the invoices.
- Ensure you enter only those details where you have proper documentation.
- **Part B**: Claim for Transitional Credit.
- This section is used for claiming the credit of VAT/CST carried forward from the previous regime.
4. **Upload and Submit**:
- Once all details are filled in, review the form for accuracy.
- Submit the form and generate the JSON file.
- Upload the JSON file to the GST portal.
#### **b. Claiming ITC Under the 60% Rule**
If you are a trader and the Excise Duty is not separately mentioned but you still want to claim ITC:
1. **Ensure GST Payment**:
- Make sure that you have paid the appropriate GST on the sale of goods.
2. **Claim ITC**:
- During the filing of your GSTR-1 or GSTR-3B (depending on your filing frequency), you can claim ITC as per the provisions (60% or 40%) under the trader’s ITC provision.
### **3. Documentation and Compliance**
- **Maintain Records**: Keep all the relevant documents and invoices related to Excise Duty and GST. Even if you claim ITC under the 60% rule, maintaining records is crucial for compliance.
- **Review and Audit**: Periodically review your ITC claims and ensure that you comply with all GST rules. Conduct internal audits to ensure there are no discrepancies.
### **Summary**
1. **Excise Duty ITC**: Can be claimed only if explicitly mentioned in the invoice and proper documentation is available.
2. **60%/40% Rule**: Applicable for traders without proper documentation, provided the appropriate GST has been paid on sales.
3. **Filing TRAN-1**: Complete the form accurately, ensuring all information is correctly entered and supported by documentation.
If you have complex scenarios or require additional assistance, consulting with a GST professional or tax advisor can provide specific guidance tailored to your situation.
### **1. Understanding the Eligibility for ITC**
#### **a. ITC on Excise Duty**
Under GST, ITC on Excise Duty is applicable to:
- **Excise Duty on Inputs**: This includes duty paid on inputs that are used in the manufacturing of goods.
- **Excise Duty on Capital Goods**: Duty paid on capital goods used in the business.
**Key Points**:
- **Document Requirement**: ITC can only be claimed on duties explicitly mentioned in the invoice. If the Excise Duty is not separately mentioned in the invoice, you generally cannot claim ITC for it.
- **Transition from VAT/CST**: If you were registered under the VAT/CST Act and now transitioning to GST, you can claim ITC on stock as of the GST implementation date if you have valid documentation.
#### **b. 60% / 40% Rule for Traders**
For traders dealing in goods, a special provision allows them to claim ITC even without proper documentation (if they have not received any tax invoices) under certain conditions:
- **60% ITC**: Allowed if the rate of CGST/SGST or IGST is 18% or more.
- **40% ITC**: Allowed if the rate of CGST/SGST or IGST is less than 18%.
**Conditions**:
- You must have paid GST on the outward supply.
- This provision is available for traders who are not manufacturers or service providers.
### **2. Procedure for Claiming ITC**
#### **a. Filing TRAN-1**
For claiming ITC of Excise Duty (or VAT/CST) through TRAN-1:
1. **Log in to GST Portal**:
- Go to the GST portal and log in with your credentials.
2. **Navigate to TRAN-1**:
- Go to **Returns > TRAN-1**.
3. **Fill in Details**:
- **Part A**: Input Tax Credit of Excise Duty and VAT.
- Enter details of Excise Duty paid on inputs and capital goods as per the invoices.
- Ensure you enter only those details where you have proper documentation.
- **Part B**: Claim for Transitional Credit.
- This section is used for claiming the credit of VAT/CST carried forward from the previous regime.
4. **Upload and Submit**:
- Once all details are filled in, review the form for accuracy.
- Submit the form and generate the JSON file.
- Upload the JSON file to the GST portal.
#### **b. Claiming ITC Under the 60% Rule**
If you are a trader and the Excise Duty is not separately mentioned but you still want to claim ITC:
1. **Ensure GST Payment**:
- Make sure that you have paid the appropriate GST on the sale of goods.
2. **Claim ITC**:
- During the filing of your GSTR-1 or GSTR-3B (depending on your filing frequency), you can claim ITC as per the provisions (60% or 40%) under the trader’s ITC provision.
### **3. Documentation and Compliance**
- **Maintain Records**: Keep all the relevant documents and invoices related to Excise Duty and GST. Even if you claim ITC under the 60% rule, maintaining records is crucial for compliance.
- **Review and Audit**: Periodically review your ITC claims and ensure that you comply with all GST rules. Conduct internal audits to ensure there are no discrepancies.
### **Summary**
1. **Excise Duty ITC**: Can be claimed only if explicitly mentioned in the invoice and proper documentation is available.
2. **60%/40% Rule**: Applicable for traders without proper documentation, provided the appropriate GST has been paid on sales.
3. **Filing TRAN-1**: Complete the form accurately, ensuring all information is correctly entered and supported by documentation.
If you have complex scenarios or require additional assistance, consulting with a GST professional or tax advisor can provide specific guidance tailored to your situation.
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