Summary of Transitional Provisions

Section	Section Description	Common Provisions under CGST & SGST Acts	Specific Provisions under CGST Act	Specific Provisions under SGST Act
139	Migration of Existing Taxpayers	Existing Registered Persons holding a valid PAN shall be issued certificate of registration on provisional basis and subject to prescribed conditions final certificate of registration shall be granted. If the Migrated person applies being not liable to register under GST Act, then the certificate of registration issued on provisional basis shall be deemed to have not been issued.
140(1)	Transitional arrangements for Input Tax Credit Carried Forward in Return to be allowed as Tax Credit in GST	Registered Taxable person (Excl. Person under composition) shall be allowed to take credit of closing Cenvat Credit/Vat/Entry Tax. Tax credit has to be taken as opening balance in Electronic Credit Ledger.
	Common circumstances for Credit not carry forward under CGST & SGST Acts:–	Tax Credit carried forward is not admissible as input tax credit under GST law. Required Returns are not furnished under existing law for period of 6 months immediately preceding the day on which GST Act comes into force.	Said amount of Cenvat credit relates to goods manufactured and cleared under exemption notification.	Input credit is related to goods manufactured using notified exemption notification e.g. units enjoying benefits under PSI schemes will not be entitled to claim set-off under Rule 79 of MVAT Rules, 2005. [Sec 140(1) of Mah. GST Act]. Input credit as is attributable to any claim related to Section 3 (C form), Sec 5(3) (H form), Sec 6 (E Form), Sec 6A (F form), Sec 8(8) (I form) of CST Act which is not substantiated in the manner, and within the period prescribed in Rule 12 of CST (Registration & Turnover) Rules, 1957. Amount equivalent to credit retained above shall be refunded under the VAT law when the claims are substantiated in the manner prescribed in Rule 12 of CST (Registration & Turnover) Rules, 1957.
140(2)	Transitional arrangements for unavailed Input Tax Credit on Capital Goods not carry forward in return to be allowed in GST in certain situations	“Registered Person shall be allowed to take credit in the electronic credit ledger subject to following conditions:– Unavailed Cenvat Credit/Vat/Entry Tax is admissible as cenvat credit/ input tax credit under existing law and input tax credit under GST law. Unavailed specified duties= Aggregate amount of specified duties entitlement in respect of capital goods under existing law (-) specified duties already availed in respect of capital goods under existing law.
140(3)	Credit of eligible duties and taxes in respect of inputs held in stock to be allowed in certain situations for person not liable to be registered under existing law Eligible Persons entitled to take credit of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the appointed day		“Registered Person Who was not liable to be registered under the existing law Who was engaged in the manufacture of exempted goods or provision of exempted services.	Registered Person Who was not liable to be registered under the existing law. Who was engaged in the sale of exempted goods or tax free goods. Goods which have suffered tax at the first point of their
			Who was providing works contract service and was availing benefit of Not. 26/2012–ST dated 20-06-2012 First stage Dealer or Second stage dealer Registered importer or depot of manufacturer “	sale in the State and the subsequent sales of which are not subject to tax in the State under the existing law but which are liable to tax under this Act where the person was entitled to the credit of input tax at the time of sale of goods.
	Conditions for availing credit (possession of invoice or other prescribed documents evidencing payment of tax under the existing law)	Such inputs or goods are used or intended to be used for making taxable supplies under this Act The said registered person is eligible for input tax credit on such inputs under this Act The said registered person is in possession of invoice or other prescribed documents evidencing payment of tax under the existing law in respect of such inputs; Such invoices or other prescribed documents were issued not earlier than twelve months immediately preceding the appointed day	Supplier of services is not eligible for any abatement under this Act.
	Conditions for availing credit (not in possession of invoice or other prescribed documents	Rate, Period and Extent of Credit:– - 60% of Central/State Tax applicable if Central/State Tax applicable is individually 9% or more.	Eligible Goods:- Goods on which duty of Central excise or additional duties of customs under Section 3(1) of Customs Tariff Act, 1975 is leviable.	Eligible Goods:- Goods which have suffered tax at the first point of their sale in the State and the subsequent sales of which are not subject to tax in the State.
	evidencing payment of tax under the existing law)	40% of Central/State Tax applicable in other goods. on supply of such goods after the appointed date and it shall be credited after the Central/State tax payable on such supply has been paid. Other conditions Taxable person shall pass on the benefit of such credit by way of reduced prices to the recipient. Document for procurement of goods is available with the registered person Scheme shall be available for six tax periods from the appointed date, form GST Trans-2 has to be file.	Other Conditions Goods were not unconditionally exempt from duty of excise specified in the First Schedule to the Central Excise Tariff Act, 1985 or were not nil rated. The Stock of goods on which credit is availed is stored in such manner that it can be easily identified by the registered person.	Other Conditions Goods were not wholly exempt under State Value Added Tax.
140(4)	Credit of Eligible duties when Registered person is engaged in manufacture/sale of taxable as well exempted goods or provision of taxable as well as exempted services	Eligible Credit to be in accordance with u/s. 140(1) & u/s. 140(3):- The amount of credit carried forward in a return furnished under the existing law. The amount of cenvat credit/Vat/Entry Tax in respect of Inputs held in stock and Inputs contained in semi-finished or finished goods held in stock on the appointed day, relating to such exempted goods (under CGST)/relating to such exempted goods/tax-free goods (under SGST) relating to such exempted goods (under CGST)/relating to such exempted goods/tax-free goods (under SGST)	Registered Person who was engaged:– In manufacture of taxable as well as exempted goods under Central Excise Act, 1944. Provision of exempted as well as taxable services under Chapter V of the Finance Act, 1994. which are liable to tax under this Act, shall be entitled to take in his/her electronic credit ledger	Registered Person who was engaged:– In sale of taxable goods as well as exempted goods or tax free goods under the existing law but which are liable to tax under this Act, shall be entitled to take in his electronic credit ledger.
140(5)	Credit of Eligible duties and taxes in respect of “Inputs or Input services during Transit”	Registered Person shall be entitled to avail Eligible duties as defined in Section 140(10) /Vat & Entry Tax respectively in his/her electronic credit ledger in respect of Inputs and Inputs services received after GST Act comes into force but duty or tax in respect of which has been paid by the supplier under existing law, subject to condition that the Invoices / Duty Paying documents shall be recorded in books of account within 30 Days from the date GST Act comes into force.
140(6)	Credit of eligible duties and taxes on inputs held in stock to be allowed to a Taxable person switching over from Composition scheme	Any Registered person who is paying tax in the capacity of Composite Taxpayer at a fixed rate or fixed amount under the present tax law of Centre / State shall be entitled to take credit of eligible duties as defined in Section 140(10) in Electronic Credit Ledger in respect of Inputs, WIP in stock, input contained in Finished Goods as on the date immediately preceding to the Date from which GST Act comes into force. Such credit shall be eligible subject to following conditions:– Such inputs or goods are used or intended to be used for making taxable supplies under GST. Registered Person is not paying tax under composition under GST. Input tax credit on such inputs is eligible under GST. Registered Person is in possession of invoice or other prescribed documents evidencing payments of duty under existing Central/State laws in respect of inputs. Such invoices or other prescribed documents were issued within 12 months from the date on which GST comes into force.
140(7)	Credit distribution of service tax by an Input Service Distributor	Any Input Tax Credit on account of any services received prior to the appointed day by an ISD shall be eligible for distribution as credit under GST even if the invoices relating to such services are received on or after day GST comes into force.
140(8)	Provision for transfer of unutilised CENVAT Credit by taxable person having centralized registration under the earlier law	Registered person having Centralised Registration in earlier law shall take the CENVAT Credit of amount carry forward in return on the day GST comes into force in his/her Electronic Credit Ledger subject to following :– If Registered person furnishes last return under existing laws within 3 months from the day GST comes into force, such credit shall be allowed subject to condition that credit in the said return whether original or revised is reduced than the amount claimed earlier. Credit of such amount shall be allowable as Input tax credit under GST. CENVAT Credit availed on input services may be transferred to any of registered persons having same PAN for which Centralised Registration had been taken under existing law.
140(9)	Provisions for claim of Cenvat Credit availed on input services reversed due to non-payment.	If Cenvat Credit availed for input services is reversed due to non-payment of consideration within 3 months from the appointed date, such credit can be re-claimed if such registered person makes payment of consideration for such supply of services within a period of 3 months from the day GST comes into force.
140(10)	Eligible Duties	For Section 140(3), 140(4), 140(6) – In respects of inputs held in stock and inputs contained in Semi-finished or finished goods held in stock. Additional duties of excise leviable under Section 3 of the Additional duties of Excise (Goods of Special Importance) Act, 1957 Additional duties leviable under Section 3(1) of the Customs Tariff Act, 1975. Additional duty leviable under Section 3(5) of Customs Tariff Act, 1975 Additional duty leviable under Section 3 of the Additional duties of Excise (Textile and Textile Articles) Act, 1978 Duty of excise specified in First Schedule to the Central Excise Tariff Act, 1985 Duty of excise specified in Second Schedule to the Central Excise Tariff Act, 1985 National Calamity Contingent duty leviable under Section 136 of the Finance Act, 2001. In addition to above, for Section 140(5) - In respects of inputs and inputs services received on or after the appointed date. Service tax leviable u/s. 66B of the Finance Act, 1994 “
141	Inputs/semi-finished goods/excisable goods removed prior to appointed day for job work & returned on or after the appointed day.	Where any Inputs received at a place of business had been removed as such or removed after being partially processed to a job worker for further processing, testing, repair, reconditioning or any other purpose Semi-finished goods received had been removed from place of business to any other premises for carrying out certain manufacturing processes Excisable goods manufactured at a place of business had been removed without payment of duty for carrying out tests or any other process not amounting to manufacture to any other premises, whether registered or not, In accordance with the provisions of earlier law prior to the appointed day and such inputs, are returned to the said factory/said place of business on or after the appointed day– No tax shall be payable if such inputs are returned to the place of business within a period of 6 months + 2 months (on sufficient cause to be extended by Commissioner) from the appointed day. Input tax credit shall be liable to be recovered in terms of Section 142(8)(a) if such inputs are not returned to the place of business within above specified period. Above provisions will apply only if manufacturer and the job worker declare the details of the inputs, semi-finished goods, or finished goods as applicable held in stock by the job worker on behalf of the manufacturer on the appointed day in Form GST TRAN-1 specifying therein stock of inputs, semi-finished goods, or finished goods as applicable.
142(1)	Dutiable Goods Returned to Place of Business in GST regime	Goods returned by Unregistered person to Registered Person:- Registered person shall be eligible for refund if dutiable/taxable goods on which duty/tax is paid at the time of removal are removed prior to 6 months from the day GST comes in force and further returned by an unregistered person to such registered person within a period of 6 months from the date of enactment of GST. Further, such goods are identifiable to the satisfaction of the officer. Goods returned by Registered person to Other Registered Person:- Goods Returned by such person shall be deemed to be supply. The other conditions in respect of removal of goods and its return apply as above.
142(2)	Issue of supplementary invoices, debit or credit notes where price is revised in pursuance of a contract entered prior to GST coming in force.	Upward revision of prices:- In case the price of any goods are revised upwards after GST comes into force, the Registered person who had removed or provided such goods or services or both shall issue to the recipient supplementary Invoice or Debit Note containing prescribed particulars within 30 days and it shall be deemed to have been issued in respect of outward supply. Downward revision of prices:- In case the price of any goods are revised downwards after GST comes into force, the Registered person who had removed or provided such goods or services or both may issue to the recipient a Credit Note containing prescribed particulars within 30 days and it shall be deemed to have been issued in respect of outward supply. The Registered person shall be allowed to reduce his/her tax liability on account of issue of the credit note only if the recipient of the credit note has reduced his/her input tax credit corresponding to such reduction of tax liability.
142(3)	Pending Refund Claims to be disposed of under earlier Law	Claim for Refunds submitted by any person under earlier law in respect of Cenvat credit/input tax credit, duty, tax, interest or any other amount shall be disposed of in accordance with the existing laws and any amount accruing to him/her shall be refunded in cash. If the claim is fully or partially rejected, then the amount so rejected shall stand to lapse. No refund shall be granted of Cenvat credit/input tax credit where such amount has been carried forward under GST.
142(4)	Refund claims for goods or services exported but filed on or after the appointed day.	Refund claims filed on or after the appointed day for any duty or tax paid under the existing law in respect of goods or services exported before or after the date of enactment of GST shall be disposed in accordance with provisions of existing law. If the claim is fully or partially rejected, then the amount so rejected shall stand to lapse. No refund shall be granted of any cenvat credit/input tax credit where such amount has been carried forward under GST.
142(5)	Refund Claims/ITC Reversal – As detailed further		Refund claims filed after the appointed day for tax paid before the appointed day in respect of services not provided. Provisions for Refund Claims as applicable in the earlier law shall be followed for refund in GST in respect any Tax deposited prior to GST Implementation date.	Position for ITC reversed prior to the appointed date. Any amount of input tax credit reversed prior to the appointed day shall not be admissible as input tax credit under this Act.
142(6)	Finalisation of proceedings relating to Claim/ recovery of Cenvat Credit/ Input Tax Credit.	Every proceeding initiated under any appeal, review or reference shall be disposed of in accordance with the provisions of earlier law Claim of Cenvat Credit and any amount of credit found to be admissible shall be refunded in cash Recovery of Cenvat Credit and any amount of credit which becomes recoverable shall be recovered as arrear of tax under this Act unless the same is recovered under existing law.	“Refund of Cenvat Credit in cash shall be granted notwithstanding anything contained under provisions of existing law other than :- Section 11B(2) of Central Excise Act, 1944 Amount rejected, if any shall not be admissible as input tax credit under this Act. Amount is carried forward under the Act.	Refund of Input Tax Credit in cash shall not be granted if Such amount is carried forward under the Act. Amount is rejected shall not be admissible as input tax credit under this act.
142(7)	Finalisation of proceedings relating to Claim/ recovery of any Output duty or tax liability	Every proceeding initiated under any appeal, review or reference (incl. revision under SGST Act) shall be disposed of in accordance with the provisions of earlier law. Recovery of Output duty/Tax liability and if any amount becomes recoverable shall be recovered unless recovered under earlier law, as an arrear of duty or tax under this Act and the amount so recovered shall not be admissible as input tax credit under this Act. Refund of Output duty/Tax liability to taxable person and any refund shall be paid in cash.	Refund of CENVAT Credit in cash shall be granted notwithstanding anything contained under provisions of existing law other than :– Section 11B(2) of Central Excise Act, 1944 Amount rejected, if any shall not be admissible as input tax credit under this act.	Refund in cash shall not be granted if amount is rejected and the same shall not be admissible as input tax credit under this Act.
142(8)	Treatment of the amount recovered or refunded in pursuance of assessment or adjudication proceedings	Where in pursuance of any assessment or adjudication proceedings Recovery of Tax/Interest/Fine/Penalty shall be recovered unless recovered under earlier law, as an arrear of duty or tax under this Act and the amount so recovered shall not be admissible as input tax credit under this Act. Refund of any Tax/Interest/Fine/Penalty and any refund shall be paid in cash.	Refund of CENVAT Credit in cash shall be granted notwithstanding anything contained under provisions of existing law other than :– Section 11B(2) of Central Excise Act, 1944 Amount rejected, if any shall not be admissible as input tax credit under this Act.	Amount rejected, if any shall not be admissible as input tax credit under this Act.
142(9)	Treatment of the amount recovered or refunded in pursuance of Revision of Returns	Where any return furnished under the existing law is revised after GST enactment Recovery of any amount/ Inadmissible Cenvat Credit shall be recovered unless recovered under earlier law, as an arrear of duty or tax under this Act and the amount so recovered shall not be admissible as input tax credit under this Act. Refund of any amount/ Inadmissible Cenvat Credit to taxable person and any refund shall be paid in cash.	Refund of CENVAT Credit in cash shall be granted notwithstanding anything contained under provisions of existing law other than :– Section 11B(2) of Central Excise Act, 1944 Amount rejected, if any shall not be admissible as input tax credit under this Act.	Amount rejected, if any shall not be admissible as input tax credit under this Act.
142(10)	Treatment of Supply pursuant to contracts entered prior to GST enactment date.	Supply of such goods and/or services shall be liable to be taxed as per provisions of this Act.
142(11)	Taxability of Supply made under GST vs. Point of Taxation under earlier law.	Section 142(11)(a)/(b):– Notwithstanding provisions of Sections 12/13 pertaining to time of supply of goods/ services, tax shall be payable as per the earlier provisions of the Point of Taxation if the said POT arose prior to the GST Act comes into force. Section 142(11)(c):– Where tax is paid on any supply both under Vat and under Service Tax, tax shall be leviable under this Act and such taxable person shall be entitled to take credit of vat or service tax paid under the existing law to the extent of supplies made after the appointed day and such credit shall be calculated in such manner as prescribed. Persons to whom above Section 142(11)(c) applies shall within a period of 90 days from appointed day, submit a declaration electronically in Form GST TRAN-1 furnishing the proportion of supply on which vat or service tax has been paid before the appointed day but supply is made after the appointed day and ITC is admissible thereon.
142(12)	Goods sent on approval basis returned on or after the appointed day	No Tax shall be payable if the goods sent on approval basis are within 6 months before the date of enactment of GST Act and are further received back within a period of 6 months from the date when GST comes into force. The period of 6 months shall be extended by further 2 months on sufficient cause being shown to Commissioner. Tax shall be payable by person returning goods and also by the person sending the goods if such goods are received after period of 6 months.“
142(13)	Transitional Provisions for Tax deducted at Source	Where any supplier has made any sale of goods and raised an invoice on which TDS was deducted under Mvat Act, 2002; no TDS shall be deducted under Section 51 of this act if payment is made after enactment of GST Act.
142(14)	“Transitional Provisions for goods lying at Agent’s Place. (Only under SGST Act)	N.A.	N.A.	If goods or capital goods of the Principal are lying with an agent at his/her premises on the date of enactment of GST, the agent shall be liable to take credit of the tax paid on such goods or capital goods subject to following conditions :- Agent is a registered taxable person Principal and agent declare the details of stock of goods or capital goods lying with the agent on day before enactment of GST in prescribed manner. Invoice for such goods or capital goods is within 12 months from date of enactment of GST. Principal has either reversed or not availed input tax credit on such goods or capital goods. If any credit is availed by him/her, the same is reversed.
				Above provisions will apply only if Principal and agent declare the details of the inputs, semi-finished goods, or finished goods as applicable held in stock by the agent on behalf of the principal on the appointed day in Form GST TRAN-1 specifying there in stock of inputs, semi-finished goods, or finished goods as applicable.
	Explanation to Transitional Provisions	N.A.	For the purposes of this Chapter, the expressions “capital goods”, “Central Value Added Tax (CENVAT) credit”, “first stage dealer”, “second stage dealer”, or “manufacture” shall have the same meaning as respectively assigned to them in the Central Excise Act, 1944 or the rules made thereunder.	For the purposes of this Chapter, the expression “capital goods” shall have the same meaning as assigned to it in the Maharashtra Value Added Tax, 2002.
Compliance under Transitional Provisions
Sr. No.	Form type	Who can file	Who cannot file	When to file
1	TRAN-1	Registered persons under GST, may be registered or unregistered under old regime	Those registering under GST as composition dealer.	31st December, 2017 (Trans-1 can be revised once as per Rule 120A)
2	TRAN-2	Registered persons under GST but unregistered or registered under old regime and a dealer or trader who does not have documents of duty paid	A manufacturer registered under excise A service provider registered under service tax	Monthly from July, 2017 to December, 2017
3	TRAN-3	Dealer who have received Credit Transfer Document (CTD) issued by Manufacturer Manufacturer who has issued CTD to dealers	Other than Eligible Persons