In our series of blog articles on “How to file Form GST TRAN-1”, we discussed the applicability and section-wise details of Table 5, 6, 7(A) and 7(B) of Form GST TRAN-1. In this article, we will discuss about:

  • Applicability of Table 7(C) and 7(D) of Form GST TRAN-1
  • How to file Table 7(C) and 7(D) of Form GST TRAN-1

Applicability of table 7(C) and 7(D) of Form GST TRAN

The Table 7(A) of Form GST TRAN-1 is applicable for businesses to claim the tax credit of VAT and Entry Tax paid in the earlier indirect tax regime. This is allowed in the following business scenarios:

  1. Businesses that have not registered under any of the earlier tax regimes, but registered under GST, and have the closing stock as on 30th June 2017, on which VAT and Entry tax has been paid.
  1. Businesses engaged in the sale of exempted goods, but the said goods are taxable under GST, and have the closing stock as on 30th June 2017, on which VAT and Entry tax has been paid.
  1. Businesses engaged in the sale of both taxable and exempted goods, but these exempted goods are taxable under GST, will be entitled to claim the tax credit of VAT and Entry Tax on closing stock held as on 30th June, 2017.
  1. Businesses that had opted for composition scheme in the earlier VAT regime, and opted to be regular dealers in GST, are allowed to claim the tax credit of VAT and Entry tax paid on closing stock held as on 30th June, 2017.

Only in the above the scenarios, and on satisfying the eligibility conditions, the businesses are required to fill Table 7(C) and 7(D) of Form GST TRAN-1.

How to file table 7(C) and 7(D) of form GST TRAN-1

The Tables 7(C) and 7(D) are similar to the Table 7(A) for claiming CEBVAT credit on closing stock.  The details are given below:

  • Table 7(C): For claiming the credit of VAT including Entry Tax on closing stock supported by invoice/document evidencing tax payment
  • Table 7(D): For claiming the credit of VAT including Entry Tax on closing stock, without any invoice/document evidencing tax payment.

Let us discuss about the Tables 7(C) and 7(D) of Form GST TRAN-1 in detail

Table 7(C) of form GST Form TRAN-1

This section is applicable for businesses that have an invoice or any other document which evidences the tax payment, such as Tax Invoice. These businesses need to capture the details of closing stock (in the form of raw-materials, semi-finished and finished goods) in the table below:
table-7c

You need to provide commodity-wise details along with the description, unit, closing quantity, closing value and VAT & Entry Tax paid on closing stock. In ‘Total Input tax credit claimed under earlier law’ (Column 6), you need to mention ITC of VAT already availed and this will be more relevant to the business scenario discussed above in point no. 3. In column 7 ‘Total Input tax credit related to exempt sales not claimed under earlier law’ (Column 7), specify the amount of VAT paid on purchases which were not availed owing to the sale being exempt. This will be relevant to the business scenarios discussed in point no. 3 and 4 above.

Based on the above details, arrive at the total input tax credit admissible as SGST/UTGST, which you need to mention in Column 8. The following calculations can be applied to arrive at admissible ITC

  1. For business scenarios discussed in points 1 and 4 above, the total VAT and Entry tax paid will be your admissible SGST/UTGST credit
  1. For business scenarios discussed in point 2 above, the total input tax credit related to exempt sales not claimed under earlier law will be your admissible SGST/UTGST credit. This is because, if you were engaged in 100% exempt sales, the entire amount of VAT paid was not allowed to be claimed as ITC. This will be equal to VAT and entry tax paid on closing stock
  1. For business scenarios discussed in point 3 above, the VAT including Entry Tax paid minus the total ITC claimed under earlier law will be your admissible SGST/UTGST credit. This will be equal to the total input tax credit related to exempt sales not claimed under the earlier law

Please note, this section is applicable only for businesses claiming VAT Including Entry Tax on closing stock supported by invoice/document evidencing tax payment

Table 7(D) of form GST Form TRAN-1

Those businesses that do not have tax paid invoices, need to capture the details of closing stock details (in the form of raw-materials, semi-finished and finished goods) in the table below:
table-7d

This section is also applicable for businesses located in those states, whichhad a single stage VAT system. Under this system, VAT was levied only at the first stage of sale by the manufacturer or the first importer. In subsequent stages when such goods were sold by wholesalers, distributors or retailers, the same was sold as tax free. In Punjab, this was applicable for certain notified goods.

The claim from the above table will be in the form of Deemed Credit. It will be credited to the e-credit ledger in the GST Portal, only when such stocks are actually supplied, and tax collected is paid to the government. The following is rate of deemed credit allowed when tax paid invoices are not available.

GST RateSGST/UTGSTIGST
18% and 28%60%30%
5% and 12%40%20%

As per the table, if the GST rate applicable on the closing stock is 18% or 28%, you will get a deemed credit of 60% of SGST/UTGST, or 30% of IGST. Similarly, if it is 5% or 12%, then 40% of SGST/UTGST, or 20% of IGST will be allowed. To know more about the deemed credit and the related conditions, read GST Migration – Demystifying the Closing Stock Dilemma.

You need to provide the HSN-wise details along with the UoM, closing quantity, and closing value of the stock. In the ‘Tax paid’ column, you can simply mention ‘0’. This is because, firstly, the credit in the above scenarios is allowed as deemed credit, and not on the basis of the amount mentioned in the eligible duties and taxes paid field. Secondly, a business cannot arrive at the eligible duties paid on closing stock in the absence of duty details in the invoice. This is the reason to allow deemed credit.

Please note, Table 7(D) is applicable only for Traders. Not Applicable to Manufacturer or Service Provider

Steps to file TRAN-1 online

    • Login to GST Portal and navigate to: Services -> Returns -> Transitions forms.
    • Click Table 7 of Form GST TRAN-1.
    • Select ‘7b-Eligible Duties and taxes/VAT/ [ET]’ or ‘4d-Stock of Goods’ as applicable
    • Click ‘Add details’ option available at the bottom of the page. The details of Table 7(C) as discussed, will be available as shown in the table below:
For business scenario discussed in point no 1 and 4

tran1-online

In the above section, you need to manually enter the following details:

  • In the ‘Number’ field – enter the HSN code and description of goods held in stock as on 30th June,2017
  • Mention the unit of measurement, closing quantity and closing stock value
  • Mention the VAT and Entry tax paid.
  • Select the Type of Goods – Inputs, Semi-finished goods, Finished goods
  • For business scenarios discussed in 1 and 4 above, ‘Total input tax credit claimed under earlier regime’ and ‘Total tax credit related to exempt sales not claimed in earlier regime’ will not be applicable. You need to mention ‘0’ in those fields.
  • VAT including Entry Tax paid will be the total input tax credit admissible as SGST/UTGST.
For business scenario discussed in point no 2

point-no-2

  • The ‘Total input tax credit claimed under earlier regime’ will not be relevant.
  • In ‘Total tax credit related to exempt sales not claimed in earlier regime’, mention the amount of ITC which was reversed in the earlier regime due to sales being exempt.
  • In this case, the amount entered in ‘VAT and Entry Tax paid’ will be equal to the ‘total tax credit related to exempt sales not claimed in earlier regime’
  • Total input tax credit related to exempt sales not claimed under earlier law will be your admissible SGST/UTGST credit

For business scenario discussed in point no 3

point-no-2-2

  • Mention the amount of ITC already availed in ‘Total Input Tax Credit Claimed under Earlier Regime’. The ITC already claimed should be reduced from VAT and Entry Tax paid.
  • Next, mention your total tax credit related to exempt sales not claimed in earlier regime. This will be equal to the VAT including Entry Tax paid minus the total ITC claimed under the earlier regime.
  • VAT including Entry Tax paid minus total ITC claimed under the earlier law, will be your admissible SGST/UTGST credit. This will be equal to the total input tax credit related to exempt sales not claimed under earlier law.

Table 7(D) form GST TRAN-1

    • From Table 7 of Form GST TRAN-1, select ‘Details of the inputs held in stock’ and click ‘Add details’. The details will be available as shown below:

form-tran-1

You need to enter the following details manually,

  • In ‘Number’, mention the HSN code followed by description of goods held in stock as on 30th June,2017
  • Mention the unit of measurement, closing quantity and closing stock value
  • Mention ‘0’ in VAT and Entry tax paid and the deemed credit as discussed above will be credited your e-credit ledger after the goods are supplied and relevant taxes are paid to the Government.
  • Save the details and submit.

To download the GST TRAN-1 format, click here

Other blog posts in this series

 How File GST-TRAN-1: Transitional credit from CENVAT credit and input VAT from last return

How to File GST TRAN-1: Unavailed input credit on capital goods

How to File GST TRAN-1: Claiming ITC on closing stock held on 30th June, 2017

How to File GST TRAN-1: When 7(b) GST TRAN-1 is applicable

How to File GST TRAN-1: Applicability of Table 8 of GST TRAN-1

Due Date to File GST TRAN-1 Extended

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Yarab A

Author: Yarab A

Yarab is associated with Tally since 2012. In his 7+ years of experience, he has built his expertise in the field of Accounting, Inventory, Compliance and software product for the diverse industry segment. Being a member of ‘Centre of Excellence’ team, he has conducted several knowledge sharing sessions on GST and has written 200+ blogs and articles on GST, UAE VAT, Saudi VAT, Bahrain VAT, iTax in Kenya and Business efficiency.