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GST TRAN-1: What is TRAN-1 and How to File it?

Updated on: Jun 22nd, 2021 - 9:02:09 AM

9 min read

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Form TRAN-1 should be filed by every person having ITC on closing stock and migrated to GST form VAT, Service Tax, or Central Excise.

The balance of closing stock held by a business as on 1st July 2017 has to be disclosed in TRAN-1 to claim ITC on the old stock in the GST regime.

TRAN-1 can be filed and revised once on the GST Portal till 27th 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 Guide to File TRAN-1 on GST Portal

Step 1: Login to GST Portal.

Step 2: Go to the ‘Services’ > ‘Returns’ > ‘Transition Forms’.

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Step 3:  You will be able to see all the tiles w.r.t. TRAN-1.

Based on whether you have filed a return for the past 6 months select ‘Yes or ‘No’ from the drop-down.

Note: If TRAN-1 is already submitted, a Reopen button is provided to modify/ add previously filed data.  The data can be modified and submitted only once.

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Step 4: 5(a), 5(b), 5(c) – Amount of tax credit carried forward: 

This section contains details of ITC to be carried forward from the pre-GST regime to current regime. Enter details in all the fields and save it. Errors (if any) will be reflected and needs to be rectified.

Step 5:  6(a), 6(b) – Details of capitals goods for which un-availed credit has not been carried forward:

Details of capital goods for which unavailed ITC is to be carried forward is shown here.
Under each tab, invoice-wise details need to be entered separately. So, If there are many entries you can upload JSON file.

Step 6: 7(a), 7(b), 7(c), 7(d) – Details of the inputs held in stock:

summary of the following has to be mentioned in this section:

  1. Inputs held in stock as on 1st July 2017
  2. Input contained in semi-finished goods or finished goods held in stock as on 1st July 2017

Step 7: 8 – Details of transfer of CENVAT credit for a registered person having centralized registration:

In this section, a summary of ITC to be transferred as CGST credit to your current GSTIN has to be mentioned.
The PAN of your current GSTIN and the PAN mentioned in the previous tax regime should be the same.
The amount mentioned will add up to your electronic credit ledger.

TRAN-1

Step 8: 9(a), 9(b) – Details of goods sent to job-worker and held in his stock on behalf of principal under section 141:

Provide summary details of goods sent to job-worker and held in stock by the Job-worker on behalf of principal by the principal and agent.

This section consists of two tabs:

1. Details of Goods Sent as principal

TRAN-1

2. Details of Goods Held in Stock

TRAN-1

Once details are entered under each tab, Click on ‘Save’. Any errors will reflect after saving the details. The errors need to be corrected to proceed further.

Step 9: 10(a), 10(b) – Details of goods held in stock as agent on behalf of the principal under section 142:

Provide summary details 6of goods held in stock as agent on behalf of the principal under section 142(14) of SGST Act and the admissible credit to the agents on such stock.

This section contains two tabs:

1. Goods in Stock (Held on behalf of principal)

TRAN-1

2. Goods in Stock (Held by Agent)

TRAN-1

Step 10: 11 – Details of credit availed in terms of Section 142(11(c)):

Provide summary details of tax paid under the pre-GST regime and the allowable credit under GST on supplies which were taxable under VAT and Service Tax regime and also taxable in GST regime.

TRAN-1

Step 11: 12 – Details of goods sent on approval basis six months prior to the appointed day (section 142(12)):

Summary details of goods sent on approval basis after 1st January 2017 (i.e. before 1st July 2017) but returned after 1st July 2017.

TRAN-1

Filling up so many details is a time-consuming process and is prone to errors. You can get this work done by expert using  ClearTax services for filing TRAN-1 which will make the whole process seamless and quick.

Step 12:  ‘Submit’ TRAN-1

Click on ‘Submit’ button to freeze the details.

The data once frozen cannot change.

TRAN-1

Step 13: A warning message will be displayed. Click on ‘PROCEED’.

TRAN-1

The status of the TRAN-1 on the GST Portal changes from ‘Not filed’ to ‘Submitted’.

On successful submission of TRAN – 1, the transition credit claimed in the form us added in the balance of Electronic Credit Ledger.

However, it can be utilised only after filing of TRAN 1.

Step 14: File TRAN – 1 with DSC or EVC

TRAN-1

Enter the authorised signatory detail and click on either of following options available:

  1. FILE WITH DSC-> click proceed on warning screen-> Select certificate and click SIGN button
  2. FILE WITH EVC->enter OTP sent on mail and registered mobile number of the authorised signatory registered on GST portal-> Click “Verify” button

The success message is displayed and acknowledgment is generated. Click the ‘OK’ button.

Status of the TRAN- 1 changes from “Submitted” to “Filed”.
Credit claimed in TRAN- 1 gets credited to the taxpayer’s credit ledger on the successful filing of the form.

The ITC posted in Electronic Credit Ledger can be used to offset liabilities of GSTR-3B (July 2017) or any other subsequent returns.

Filling up so many details is a time-consuming process and is prone to errors. You can get this work done by expert using  ClearTax services for filing TRAN-1 which will make the whole process seamless and quick.

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