How to file TRAN-2 on GST portal?

Many dealers who were not registered under the previous regime have to register under GST due to the low turnover limit for GST Registration. These unregistered dealers may have stock of inputs, semi-finished goods or finished goods as on 1st July 2017 when GST came into force. These taxpayers must have also paid Tax under the previous regime on these purchases.

The dealers who do not have bills/invoices for the tax paid on the inputs must file TRAN-2. A taxpayer has to file Form TRAN-1 and GSTR-3B for the relevant month before filing Form TRAN- 2 This form has to be filed for every month in which such stock is sold up to December 2017.

Latest Update

1st October 2022
The GST portal re-opened the facility to file or revise earlier filed TRAN 1/ 2 following the Supreme Court’s directive. The window to file these forms will be available from 1st October 2022 to 30th November 2022. Also, the GST portal released an advisory explaining the revised processes for claiming transitional ITC.

Here is a step-by-step process of filing the Form TRAN-2 on the GST portal:

Note: Ensure that you file the TRAN-1 Form and the GSTR-3B return of the relevant month before you proceed with these steps.

Step 1: Login to GST portal

Step 2: Click on ‘Services’-> Go to ‘Returns’->Click on ‘Transition forms’

Step 3: Click on ‘TRAN-2’ tab -> select the Financial ‘year’ and relevant ‘month’ for which you want to file the form TRAN-2 and Click on ‘Search’ .

Step 4: The details of GSTIN and Legal name/trade name is auto-populated.

Apart from these, You have two blue tiles, as shown below.

You need to click on the applicable tile and fill in the details.

Let’s explore each of the tiles-

Step 4a: The Blue tile -“ 4 -Details of Inputs held on stock on appointed date in respect of which he is not in possession of any invoice/ document evidencing payment of tax carried forward to Electronic Credit Ledger ”

This section is for the stock-wise declaration of the Sales figures of those inputs in stock/ contained in semi-finished goods/finished goods which were subject to Excise duty/Additional customs duty and the ITC is allowed on the same under GST regime.

Note: You must have declared ‘details of inputs held in stock (Where duty paid invoices are not available’ at part 7B of the tile 7(a) of TRAN-1 form. Then only you will be allowed to enter details in this tile.

Note that you are provided with the

against each entry you make to ‘edit’ or ‘delete’ respectively.

Click on ‘ADD DETAILS’

Fill all the mandatory fields and Click ‘SAVE’

Each Field is explained as follows:

Here are the details that you need to enter the fields:

1. Quantity of Opening stock of inputs held in stock on the first day of the tax period.- (Needs To be entered one-time for the first month you file only, as this detail is auto-populated for the subsequent months)
2. Quantity and Value of Sales made during the selected tax period, from the stock of inputs/ semi-finished goods/finished goods out of the earlier regime held as on 1st July 2017(for which excise documents/invoices evidencing the payment of duty/tax are not available with the dealer)
3. The Central tax (CGST) or Integrated tax ( IGST) levied on such sales
4. ITC allowed – Here you need to manually enter the amount of ITC you are eligible to take . Refer our page on TRAN-2 for detailed calculation.
5. The quantity of Closing stock of inputs held in stock on the last day of the tax period shall be auto- computed based on details entered above.

Step 4b: The Blue tile – “ 5-Credit on State Tax on the stock(To be there only in States having VAT at single point) ”

Note: You must have declared ‘details of inputs in stock not supported by documents’ at tile 7(d) of TRAN-1 form. Then only you will be allowed to enter details in this tile.

This section is for the stock-wise declaration of the Sales figures of those inputs in stock/ contained in semi-finished goods/finished goods which were subject to VAT at single point system in some specific states like Punjab and the ITC is allowed on the same under GST regime.

Note that you are provided with the

against each entry you make, to ‘edit’ or ‘delete’ respectively.

Click on ‘ADD DETAILS’

Fill all the mandatory fields and Click ‘SAVE’

Note: The fields to be entered in this step remains the same as the previous step. The only difference is that instead of Central Tax, the filed State/UT Tax is to be filled in this step.

Step 5: Click ‘PREVIEW’ to download the PDF summary to review the draft for correctness, before its submission.

Step 6: After review, Click on ‘SUBMIT’ button to freeze the form

Note: Once submitted, there is no option to modify or revise the Form

A warning message is displayed. Click on ‘PROCEED’ to continue.

The status of the TRAN-2 form is changed to ‘Submitted’.

Step 7: Click on either ‘File with DSC’ button or ‘File with EVC’ buttonas per your convenience.

Select the authorised signatory to sign /verify the form.

After successful filing, a message is displayed and status is now changed to ‘Filed’.

An email with the ARN number will be sent to your registered email.

You can find that the claimed ITC total in the ‘ITC Allowed’ field will be posted to the Electronic credit ledger.

Impact/ Effect of filing TRAN-2:

The claimed ITC of central and state tax would be reflected in the Electronic Credit Ledger after filing of TRAN 2.It has to be noted that the ledger entries get posted after the filing of TRAN 2 and not on submitting it (unlike in TRAN 1).

ClearTax offers you services for filing TRAN 1 and a package plan of filing both TRAN-1 and TRAN 2 making the entire process simple and hassle-free.