GST TRAN 1: What Is TRAN-1? And, How To File It?

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  • Last Updated on 2 December, 2022

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As the country gears up to file GSTR 3B, which would be followed by GSTR 1 for the month of July and August, many businesses and traders find themselves lost with respect to the taxes paid in the previous tax regime under VAT, Service Tax, Excise Tax, etc. 
 
For the same, there is the provision of filing TRAN 1 to avail the credit for the taxes filed before the roll out of GST in July, 2017. 
 
The form TRAN 1 can be filed by the Registered Person under the new laws of GST who were registered under the old laws of indirect tax as well. 
 
In this matter, CBEC has issued the guidelines regarding this issue, where it has stated that those taxpayers who have filed their returns for the period till June, 2017 for the previous set of taxes in play, only they can file to carry forward their input tax credit within 90 days from 1st July, 2017, i.e. by 28th September, 2017. 
 
However, if any taxpayer wants to utilize transitional credits for making payment of taxes dues for the month of July, he is required to fill TRAN-1 before filing summary return of July. 
 
Therefore, he is bound to fill TRAN-1 before filing GSTR-3B of July. The last date of filing TRAN-1 for such persons is August 28th, 2017.
 
In simpler words, to file TRAN 1 by a Registered Person under the GST Laws, one has to keep the following points in mind:
 
• For separate GSTINs, different TRAN forms have to filed.
 
• One is eligible to avail the tax credits if they have duly filed returns for the past six months for Excise/VAT/Service Tax.
 
• The input credit in consideration must be eligible for tax credit under the new rules of GST.
 
• Input taxes paid as Service Tax and Excise would be carried forward to CGST. Similarly, taxes paid under VAT would be eligible for tax credit as CGST.
 
Those businesses or traders, who have registered themselves under GST as composition dealer, aren’t eligible to file TRAN 1. 

How to File GST TRAN 1?

Following are the step-by-step guidelines to file TRAN-1 –

1. Fill the listed columns in the form with accurate details as per the business you are claiming tax credit for. Take care in filling the details for GSTIN, Registered Person’s Legal Name and Trade Name.

2. Ensure that you have filed the necessary returns under the previous laws of VAT/Excise/Service Tax for the past 6 months.

3. Calculate and specify the amount of tax credit you want to claim through this form in the Column 5. Under this column there are further columns where you can provide the breakup in the following format-

       • Table 5(a) is for claiming credit of central taxes (excise and service tax) which have to be carried forward as Central Tax in GST. You would be required to mention the Excise or Service Tax Registration Number. Select the tax period for which last return is filed and date of filing of last return has to be mentioned. Balance amount which was carried forward in last return has to be specified. Out of that amount, you have to mention how much amount is admissible as ITC in GST as Central Tax. 
 
       • Table 5 (b) is for persons who are registered under VAT and CST and would be required to fill details of C-form, F-forms and H-forms for which assessment is pending. Also, it would be required to fill details such as TIN of issuer, name of issuer, Serial Number of such Form, Amount and VAT rate as applicable.
 
        • Table 5 (c) is for claiming credit of State taxes (VAT) which have to be carried forward as State/UT Tax in GST. Here, one has to fill VAT registration number and mention the amount of ITC remaining in last VAT return. It is also required to fill turnover for which C forms and F forms are pending along with difference tax payable thereon, along with the amount of ITC which is liable to be reversed due to such C Forms and F forms. One has to fill exact transition credit of ITC which has to be claimed as State Tax under GST after deduction amount liable to be reversed.
4. Similarly there are several other columns in the form for registered persons claim tax credits in different scenarios like dealing in exempted goods under excise or exempted services under service tax but they want to claim credit of inputs held in stock, for Job worker and Principals, for agents registered under VAT who have held goods on behalf of Principal, etc.
 
Once all the columns of the form are filled with accurate details, it can be filed through OTP submission or by signing through digital signature. No modification is allowed once it has been submitted. 
 
 
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